The Cosmos (ATOM) price has bounced at an important support level and created a higher low. The price is likely to continue increasing towards the closest resistance area as outlined below.
Long-Term Levels
The ATOM price is trading above a long-term support level at $4.40. The price broke out from here in August, before returning and validating it as support the following month. Currently, the price has made what resembles a double-bottom just above the level, reinforced by long lower wicks and two higher lows.
Future Movement
Cryptocurrency trader @BallMDR3021 tweeted an ATOM chart that shows a breakout from a descending resistance line. They predict a continued rally.
- The RSI is above 50 and increasing.
- The MACD is increasing and has almost crossed 0.
- The Stochastic RSI has just made a bullish cross and is moving upwards.
Wave Count
Since reaching a high on Aug 24, the ATOM price has completed what looks like a bearish impulse (shown in blue below). Since the previous deviation below the main support area on Sept 28, the price has begun what looks like an A-B-C corrective formation, currently trading in the C wave. A likely target for the top of the C wave is at $6.69, the length of wave A projected to the bottom of B, and the resistance line of a possible ascending parallel channel.
ATOM/BTC
The chart for ATOM/BTC looks more bearish than its USD counterpart. The price is approaching the 28,000 satoshi support area, below which it has not traded since Oct 2019. A breakdown below this area could take ATOM all the way down to 19,000 satoshis. Despite being oversold, technical indicators are still falling and show no bullish trend reversal signs yet.
Conclusion
To conclude, while the ATOM/USD price is likely to increase towards resistance, the ATOM/BTC chart has not yet shown any bullish reversal signs, despite being very close to a long-term support level. For BeInCrypto’s previous Bitcoin analysis, click here! Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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