Cosmos Price Hinges on $2 Support Amidst SpaceX IPO Fears

Cosmos' token, ATOM, surged by 15% on Thursday following a broader market rebound. This lift-off extended its June recovery gains to 30%, but has now hit an inflection point that could lead to either further upside momentum or a sell-off.

The $2 price level has acted as both support and resistance for ATOM, with the current rally hitting the 200-day Simple Moving Average (SMA), which aligns with this price level. A decisive reclaim above the 200-day SMA would flip the market structure bullish, improving the chances of extending the recovery towards $2.3 or $2.5.

However, if bulls falter at the 200-day SMA, short sellers could drag ATOM to $1.8 or back to the range-low of $1.66. The uptrend could extend if ATOM stays above $2 and the 200-day SMA, with strong buying pressure required alongside an RSI above the neutral level.

The upcoming SpaceX IPO may siphon capital from the crypto market in the short term, potentially dragging ATOM below $2. From a liquidation heatmap perspective, a volatility-driven market could push ATOM slightly higher to $2.1 before a potential drop to $1.9 or $1.7.

The above assumption was based on the upside liquidity of leveraged shorts that was piled above the $2 level. Past this zone, there was no meaningful liquidity. The $2 level could be a key roadblock if selling pressure intensifies, but defending it as support could lead to another 25% potential for ATOM bulls.