ATOM Price Analysis: Cosmos (ATOM) Must Fully Break This Zone for A Large Price Surge

  • ATOM price is up nearly 20% on the week 
  • ATOM Price has been stuck in ascending channel for weeks
  • 50MA has been holding as support

ATOM price has been attempting a breakout over the last week as many alt coins have went parabolic. BTC & ETH allowed alt coins to begin a stronger revival as they both broke out of major resistances & downtrends. The market has been rising for nearly a month straight with little correction. As BTC now seems exhausted, we may expect a retracement to come even though some alt coins have yet to make a large upward move. 

For the last 3 weeks Cosmos has been respecting an ascending channel formation. Just over the past day, bulls attempted a breakout of the top trend of the channel but was rejected back in. Along with the top trend of the channel lies a resistance zone found from $16.55-$17.50.

ATOM must fully break & hold this zone along with the top trend in order for a large surge to occur. In the case this does occur, expect ATOM to hit $18.51 +. This would allow for Cosmos to experience a larger scale retracement after 3 months of downtrending.

Cosmos Price Analysis: ATOM/USDT 4 Hour Chart

 

Over the past 4 days, price has refused to close a 4 hour candle below the median line of the channel. If bears push lower & ATOM does close a candle below, we can expect a drop to at minimum the bottom trend of the channel along with the major support found at $14.58. This area is also met with the 50MA which has been support for nearly 3 weeks.

In the case this MA does not hold & ATOM breaks out of its ascending channel, we should expect prices to fall further to the $13.00 support level. This would likely put Cosmos into a slight bear trend.

While looking at the Stochastic RSI, we can see how it has been consolidating for almost 5 days, awaiting some type of move. This has formed a symmetrical triangle formation & a breakout to either side will trigger an explosive move. The regular RSI is also in the same spot as it has formed a near week long triangle. Once both RSI’s break to one side, we can expect price to follow suit.

ATOM Intraday Analysis

  • Spot rate: $16.30
  • Trend: Bullish
  • Volatility: High
  • Support: $15.54
  • Resistance: $16.54

The post ATOM Price Analysis: Cosmos (ATOM) Must Fully Break This Zone for A Large Price Surge appeared first on Coingape.

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