Cosmos [ATOM] forms a range; here’s why the bulls eye the $17.5-target
Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation
- ATOM appeared to commerce inside a 2-month vary
- Momentum again in favor of the bulls after final week’s rally
Cosmos [ATOM] had a bullish outlook on the charts on the upper timeframes as soon as extra. The important thing stage of resistance at $13.5 had been damaged. The $13.1-$13.3 space was necessary on decrease timeframes, and this zone was additionally flipped to assist.
Right here’s AMBCrypto’s Worth Prediction for Cosmos [ATOM] in 2022-23
The AI predicts an optimistic state of affairs of a surge to $24, however the extra bearish state of affairs of a revisit to $11 appeared extra possible. This, due to the formation of the vary in August.
Vary highs at $16.7 and ATOM is more likely to head north quickly
ATOM shaped a spread (white) on the worth charts from $10.5 to $16.6. The mid-point of this vary lay at $13.5. Over the previous two days, ATOM was capable of climb previous this resistance stage and flip it to assist. The 1-day RSI additionally climbed above the impartial 50-mark to focus on bullish momentum.
However, the CMF has been tepid over the previous two weeks. It meandered between the -0.05 and +0.05 ranges and didn’t present important capital move into or out of the market.
Above the vary highs at $16.6 lay a bearish order block at $19. This order block was primarily based on the day by day timeframe and ATOM final traded above this zone in early Might.
Therefore, within the coming weeks, the $16.5-$17 zone could be a place for lengthy positions to take income. Even a push into the $19 zone wouldn’t point out a victory for the bulls. Quite, a heightened quantity of promoting may very well be the results of such a transfer.
Weighted sentiment spikes constructive, growth exercise additionally excessive
In current weeks, growth exercise has been excessive. It has been appreciably excessive since mid-August. Subsequently, traders can have some confidence within the $7.7 billion market cap asset. Over the identical interval, the weighted sentiment has additionally seen extremely constructive spikes on sure days.
The final 24 hours noticed momentum swing in favor of bullish speculators, as evidenced by the Long/Short ratio. This ratio confirmed 50.6% of the speculators to lean bullish on this interval.
The technical indicators didn’t present heavy shopping for stress, however the worth motion revealed a bullish market construction. The ascent above the mid-range stage additionally appeared to be an encouraging growth. If Bitcoin can defend the $20k-$20.2k short-term assist zone, it’s possible that each BTC and DOT may have room to increase to the upside.