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The Cosmos (ATOM) price is following an ascending support line and is likely to reach at least one of the resistance areas outlined in the analysis below.
ATOM has increased by 250% since the beginning of September. While it has undergone some short-term periods of retracement, it has made five higher-highs since beginning its climb.
Well-known cryptocurrency trader and analyst @cryptokrillin stated that the ATOM price has broken out above a significant resistance line and should be heading even higher. Additionally, he believes that the ATOM/USD pair could reach $7 before topping out.
One MA, some meme triangles is all you need.
Should fly one we break that range on $USDT pair.
$7 soon? pic.twitter.com/xpzE6bZn3p
— Crypto Krillin ॐ (@LSDinmycoffee) December 26, 2019
ATOM Keeps Climbing
The ATOM price began an upward move on Sept 5. It has currently increased by 241% relative to the low point where the reversal began.
The movement has followed two ascending support lines since Nov 22 — the first being more gradual, and the second much steeper. BeInCrypto noted that this leg of the ascent was likely to occur in a previous article.
The closest resistance areas are found at 70,000 and 80,000 satoshis.
The current upward move has begun to show weakness, but not enough to consider the move to be finished.
On one hand, the 100 and 200-day moving averages (MA) have made a bullish cross, suggesting that the price has begun a new bullish cycle.
On the other hand, the RSI has been generating a very strong bearish divergence on the daily time-frame, indicating that the upward could soon end.
It is likely that the price will make a final top in one of the resistance areas at 70,000 or 80,000 satoshis. However, it has yet to show any signs of a reversal in the form of bearish candlesticks.
Therefore, for hypothetical trading purposes, as long as the steeper ascending support line is intact, it is assumed that the price will continue moving upwards. A stop-loss could be placed below 57,000 satoshis and moved slightly upward along with the ascending support line, in order to protect against a rapid price decrease.
USD Pair
The ATOM/USD pair has been trading inside an ascending channel since Sept 6, at the same time it reached a low in its BTC pair.
The $7 target mentioned in the tweet seems unlikely for several reasons:
- The price would have to break out from the ascending channel.
- There is a significant bearish divergence in both the RSI & MACD.
- There is a strong resistance area at $5.50.
If the price were to trade inside the confines of the channel, it would likely reach the first resistance area at $5.50 in February 2020.
To conclude, while the ATOM price has shown some signs of weakness, the signals are not sufficient enough to call for a corrective period. The price is likely to reach at least one of the resistance areas outlined above.
The post ATOM Might Continue Climbing Towards $7 [Premium Analysis] appeared first on BeInCrypto.
from BeInCrypto https://beincrypto.com/atom-might-continue-climbing-towards-7-premium-analysis/
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