The current price of Cosmos is in a state of significant uncertainty as charts reveal the formation of a symmetrical triangle that may indicate an imminent breakout.
Symmetrical Triangle Signals
Analyst Ali (@ali_charts) noted that Cosmos has formed a symmetrical triangle on the 4-hour chart, nearing its apex. This structure has been developing since mid-July, compressing volatility as both buyers and sellers remain indecisive. The upper boundary between $4.80 and $5.20 has repeatedly limited upward attempts, while the ascending support trendline has held near $4.20.
Current Market Dynamics
The last 24 hours have seen a weakening in trading activity, with reported volume decreasing by more than 21% to about $132.9 million. This reduction in liquidity indicates a prudent positioning of market participants ahead of the breakout. The market capitalization is stable near $2.09 billion, while the fully diluted valuation equals the same figure, suggesting no additional token supply pressure.
Potential Scenarios and Key Risk Levels
Provided that Cosmos makes it through the upper resistance range with strong volume, it is projected to move up to at least $5.50, possibly all the way to $5.80-6.00. Conversely, any breakdown that occurs below $4.20 would indicate a bearish direction toward the $3.80-3.60 area according to the $0.786 Fibonacci mark. Volume confirmation remains crucial for either direction.
The current situation with Cosmos illustrates the probability of significant changes, with support and resistance levels remaining critical for predicting the next price movement direction.
