Cosmos' (ATOM) price maintains a positive outlook, with high odds for upside continuation after the Bollinger Bands developed a very rare trade setup. The hooking of the Bollinger Bands is a very bullish sign reflecting strong buying pressure.

Bollinger Bands Hooking Setup

The hooking of the Bollinger Bands can be recognized by the upper band pointing to the upside and the lower band pointing to the downside. Technically this trade setup emerges after a consolidation period.

As a general rule, the price will stay glued to the band in the breakout direction–which is up in our case. When the price crawls along the upper band, it signals that the demand is more significant than the supply, and higher prices are expected.

200-Day Simple Moving Average

The price is also trading above the key 200-day simple moving average, which usually separates the bullish trend from the bearish trend.

On the downside, the critical support level falls between the significant round number of $30.00 and the $29.21 level, aligning with the middle BB. On the flip side, the $36.00 level is an intermediate resistance level that the bulls need to clear out.