Cosmos (ATOM) High-Timeframe Technical Analysis: Potential +590% Upside
Monthly Power of 3 Setup in Play
Cosmos (ATOM) is showcasing a classic Power of 3 setup on the Monthly timeframe, hinting at a significant bullish opportunity:
Accumulation Phase:
Price formed sideways liquidity within an accumulation zone, consolidating investor interest over time.
Manipulation Phase:
The price broke below the accumulation zone, targeting sell-side liquidity (SSL) at the $4.230 level, trapping sellers in the process.
Distribution Phase (Potential):
With liquidity secured, the price appears poised for an upward move targeting the all-time high (ATH) at $44.800, signaling the start of a distribution phase.
Potential Gain
From current levels, this scenario suggests a potential rally of +590% toward the ATH.
Key Levels to Monitor:
Accumulation Zone: $4.230
Primary Target: $44.800 (ATH)
Technical Insights:
The Accumulation → Manipulation → Distribution phases align with principles of Smart Money Concepts (SMC).
A strong bullish structure is emerging, supported by upward liquidity shifts.
Trading Strategy Notes:
Volume confirmations will be critical for validating the breakout.
Watch for potential retracements to secure optimal entry points during the transition to the distribution phase.
Disclaimer:
This is not financial advice. Conduct your own research and consult with a professional before making investment decisions.