- Cosmos (ATOM) maintains bullish momentum with robust support at $9. If successful, a significant price surge past the $10.6 resistance level could be in the offing.
- ATOM’s response to crucial overhead resistance levels could provide valuable trading opportunities for investors with varied time horizons.
In the recent weeks, Cosmos (ATOM) has shown a pronounced bullish inclination. This bullish behaviour continues to manifest itself, even as the digital asset faces considerable resistance above the $10.2 threshold.
Battling Key Resistance: A Balancing Act for ATOM
ATOM’s valiant defence of the critical $9 support level has been a noteworthy highlight. Despite sellers’ unsuccessful attempts to drive prices below this line, the bulls are yet to conclusively take control of the $10.2 resistance level.
In Bitcoin’s (BTC) shadow, which is currently floating above the $30k mark, ATOM’s price trajectory tends to reflect BTC’s movements. A potential BTC uptrend could inevitably spur ATOM to follow suit.
Notably, ATOM, though proximate to the range lows, does not present a short-term bullish outlook mirroring Bitcoin’s. The only pessimistic scenario in the short term for ATOM emerges if BTC experiences losses, which would likely trigger a similar decline for ATOM.
ATOM’s Bullish Intent and Potential Long Trades
ATOM’s resilience, as evidenced by its multiple bounces from the trendline support (green), signifies bullish intent. In July, this led to the digital asset reaching the $10.1 and $10.28 levels. Each successive retest of the $10.2 resistance zone is likely to increasingly erode the seller’s power.
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On the 12-hour chart, the Relative Strength Index (RSI) indicates a resurgence above the neutral 50 mark, adding fuel to the bullish sentiment. However, the On-Balance Volume (OBV) has not shown a consistent uptrend over the past month, suggesting the buying pressure might not yet be substantial enough to overcome the resistance.
Positional traders might consider ATOM a buy if the price successfully breaches the $10.6 mark and retests the $10.2 level. This specific region ($10.2-$10.6) served as a prior support zone from March to June and is likely to attract a bevy of sellers upon retest.
The 1-hour chart, dating from July 18 onwards, showcases a surge in prices and a break from the previous bearish structure. This shift, paired with a spike in Open Interest (from $71.6 million to $75.8 million), signals a flood of capital and bullish sentiment. If the bulls can conquer the $9.6-$9.8 resistance region, a retest could offer scalping opportunities with an eye on the $10.2 target. This short-term strategy will be negated if there is a drop below the $9.6 level.
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