ATOM/USDT — Diving into the Zone 2.4–1.9: Breakout or breakdown?Cosmos (ATOM) is now standing at its most critical point in recent years, precisely within the historical support zone of 2.45–1.95, which has served as a major accumulation area since the early phase of the 2020 bull run. This zone isn’t just a number—it represents the psychological foundation of ATOM’s market.
In recent weeks, the weekly chart has shown a sharp decline followed by a long lower wick, signaling a massive liquidity sweep. In other words, many long positions were flushed out before price was pulled back up — an indication that smart money might be accumulating here, though no confirmed reversal has occurred yet.
Technically, ATOM remains in a medium- to long-term downtrend, forming a series of lower highs and lower lows since 2022. However, the current level opens two major possibilities — the beginning of a new accumulation phase, or the continuation of the final capitulation wave.
---
Pattern Structure & Technical Context
1. Main Trend: The multi-year downtrend remains intact.
2. Golden Zone (Historical Support): 2.45–1.95 — the same accumulation area that fueled the 2021 bull run.
3. Fakeout & Liquidity Sweep: The long wick below the zone shows liquidity collection, a potential reversal signal if confirmed by a bullish weekly candle.
4. Reversal Confirmation: Requires a weekly close above 3.75, followed by a successful retest.
5. Volume & Divergence: Watch for bullish divergence on RSI or MACD to reinforce reversal strength.
---
BULLISH SCENARIO – “The Rebirth Zone”
If price holds and rebounds strongly from the 2.45–1.95 zone, this could mark the beginning of a major re-accumulation phase. The bullish case strengthens if:
A weekly close above 3.75 occurs (reclaiming old structural support).
The move is supported by strong volume and a solid bullish candle.
A higher low forms above 2.45.
Step-by-step target levels:
➡️ 3.75 → 5.25 → 6.60 → 10.10 → 13.15 → 15.85
If momentum continues, a potential Adam & Eve Reversal or Inverse Head & Shoulders could form in this zone, signaling the transition from bear market to a new bull trend.
Core Bullish Idea: The 2.45–1.95 zone is a “life-or-death point” — holding above it offers a high-reward setup compared to the downside risk.
---
BEARISH SCENARIO – “Break the Floor”
However, if a weekly close occurs below 1.95, this historical support would be officially invalidated.
This could trigger:
A final capitulation wave toward 1.20 or even 0.85, levels that previously acted as a base before the 2020 rally.
A failed retest of the 2.45–1.95 zone (flipping it into resistance).
Weakening market sentiment, pushing ATOM into a prolonged bearish continuation phase.
In this case, traders should wait for a confirmed bottom before accumulating, as further downside risk remains open.
---
CONCLUSION
ATOM is now at the ultimate battlefield between buyers and sellers.
If the 2.45–1.95 zone holds, we could witness the early stages of ATOM’s major recovery, potentially heading back toward the 5–10 USD range. But if it breaks down, the long-term bull structure officially collapses, and the market may seek equilibrium much lower.
The coming weeks will determine whether this zone becomes the foundation of a rebirth, or the gateway to deeper decline.
---
#ATOMUSDT #Cosmos #CryptoAnalysis #WeeklyChart #SupportZone #MarketStructure #SwingTrade #BullishReversal #BearishBreakdown #TradingViewAnalysis #TechnicalAnalysis
