A classic breakout pattern is forming on Cosmos (ATOM) charts, with data showing 64% of the token's open positions are concentrated among whale wallets. The move could push the price 18% higher to $2.40 within the next two weeks — but traders are eyeing a sharp pullback once that target is hit.
Why the whale concentration matters
Whales — wallets holding large amounts of ATOM — now control nearly two-thirds of all open positions. That level of concentration often amplifies price moves. When whales hold the majority, they can drive rallies by accumulating or trigger rapid sell-offs if they decide to take profits. The current setup suggests accumulation is underway, with the token trading just below the projected target.
RSI signals overbought territory ahead
The Relative Strength Index (RSI) for ATOM is already pushing into overbought territory. That's a technical warning that buying pressure has been strong, but it also means the asset is due for a cooling-off period. Overbought conditions don't guarantee an immediate reversal, but they do reduce the odds of a sustained breakout without a pullback first.
The $2.40 target and the inevitable pullback
Analysts tracking the pattern peg the near-term price target at $2.40, an 18% gain from current levels. The move is expected to unfold over roughly two weeks. After that rally, the data points to an inevitable retreat to $1.80 support — a level that served as resistance earlier and could now act as a floor. The pullback could come quickly once the $2.40 level is tested, as profit-taking from the whale majority likely accelerates the drop.
For now, all eyes are on whether ATOM can sustain the momentum long enough to hit that target. The next key level to watch is the immediate resistance zone near $2.10; a break above that would confirm the pattern and open the door to $2.40. If the price stalls, the pullback could begin sooner than expected.
