Altcoins

ATOM: Assessing the odds of a long-term downtrend prevailing

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the opinion of the author.

Bitcoin [BTC] climbed previous the $20k mark, however even on the time of writing, the worth dipped again to $19.9k. This highlighted how vital a resistance of $20.2k-$20.8k was for BTC. Cosmos [ATOM], like many different altcoins, has a behavior of climbing greater on the charts alongside Bitcoin. Due to this fact, any weak spot from the king would probably be mirrored within the worth motion of ATOM itself.

ATOM- 12-Hour Chart

Cosmos: ATOM at a crucial resistance, will the long-term downtrend prevail?

Supply: ATOM/USDT on TradingView

On the 12-hour chart, it may be seen that the previous two months of buying and selling have been a part of a gradual downtrend. Although ATOM managed to bounce from $5.55, the longer-term pattern remained unchallenged.

With the intention to flip the bias from bearish to bullish, the worth must climb previous $10 and retest the $9.5 space as a requirement zone. The Relative Energy Index (RSI) was above impartial 50 to point out that the previous few weeks had some bullish momentum.

The On-Stability Quantity (OBV) had additionally crossed above resistance from mid-Could and steered that demand was behind the rally from the $6 zone.

ATOM- 4-Hour Chart

Cosmos: ATOM at a crucial resistance, will the long-term downtrend prevail?

Supply: ATOM/USDT on TradingView

On the four-hour chart, your complete space from $8.7-$9.5 has seen important buying and selling exercise early in June. This demarcated this space as a zone of provide the place sellers would probably be sturdy.

On the identical time, the previous three weeks have seen ATOM kind a sequence of upper lows and better highs on the worth charts, suggesting a bullish transfer. But, would this provoke an uptrend, or was this a pullback earlier than one other slide downward for ATOM?

The upper timeframe charts confirmed that ATOM would wish to climb above $10 and $12.4 to flip the bias from bearish to bullish. Within the meantime, bulls would need to see the $8.6 space (cyan field) defended, and can be anticipating a transfer towards the $9.5 mark.

Cosmos: ATOM at a crucial resistance, will the long-term downtrend prevail?

Supply: ATOM/USDT on TradingView

Bullish market individuals can discover the worth charts encouraging. The RSI backed up their bullish notion, and was nicely above the impartial 50 and confirmed an uptrend in progress previously week. Nonetheless, despite the fact that the worth made a better excessive above $8.6, the OBV was unable to push greater.

Actually, the OBV remained flat over the previous week, as did the Chaikin Cash Move (CMF). This steered a scarcity of shopping for stress behind ATOM’s rally.

Conclusion

Cosmos has seen consumers previously few weeks, however they look like combating an uphill battle. The $8.6 space offered a pretty, comparatively low-risk alternative to purchase Cosmos. A stop-loss beneath $8.4 could be set, and a retest of the demand zone could be a shopping for alternative.

But, the volatility of Bitcoin might catch merchants unawares, and cautious place sizing can be key to threat administration.

Source link

Leave a Reply

Your email address will not be published.

Back to top button