Cosmos ATOM Breaks Above Key Resistance – Eyes $16

Cosmos (ATOM) ranged in a wedge against Tether (USDT) as it builds more strength to break above the $12 key resistance. The price of Cosmos ATOM has shown bullish strength as the price breaks above resistance after ranging for days. (Data from Binance)

Cosmos ATOM Price Analysis On The Weekly Chart Weekly ATOM Price Chart | Source: ATOMUSDT On Tradingview.com

From the chart, the price of ATOM saw a weekly low of $6.2, which bounced from that area and rallied to a price of $12, marking ten weeks of bullish strength from ATOM. 

ATOM weekly candle closed with a bullish sentiment, with the new week’s candle looking bullish for price recovery. 

The price has continued to gain traction; despite Bitcoin’s (BTC) retracement, ATOM has shown great strength in breaking out of the price range. 

If the price of ATOM on the weekly chart maintains this structure, it could quickly trend higher to a region of $16, acting as the weekly resistance for the price. To avoid falling below, the price of ATOM needs to hold this support zone at $12.5.

Weekly resistance for the price of ATOM – $16.

Weekly support for the price of ATOM – $12.5.

Price Analysis Of ATOM On The Daily (1D) Chart Daily ATOM Price Chart | Source: ATOMUSDT On Tradingview.com

With more buy orders, the price of ATOM would continue to trend to the upside after forming support above the wedge; ATOM holding its price above this support will help the price to trend higher.

To confirm the bullish sentiment of ATOM, the price broke out with good buy volume after the accumulation phase for over some time now. 

The price of ATOM has shown a bullish structure after breaking out from the wedge; if bulls step in, the price of ATOM could trend higher to a region of $16, acting as key resistance on the daily timeframe.

ATOM is currently trading at $13, just above the 50 Exponential Moving Average (EMA), which corresponds to a price of $11.

On the daily chart, the Relative Strength Index (RSI) for the price of ATOM is above 65, indicating more buy orders.

Daily (1D) resistance for ATOM price – $16.

Daily (1D) support for ATOM price – $12.

Price Analysis Of ATOM On The Four-Hourly (4H) Chart Four-Hourly ATOM Price Chart | Source: ATOMUSDT On Tradingview.com

The price of ATOM has continued to show a bullish trend holding above the 50 and 200 EMA prices, which correspond to $11.3 and $10.8, acting as support respectively to the ATOM price.

ATOM needs to hold above the 50 and 200 EMA to continue its bullish sentiment; if ATOM fails to hold, the prices of $11.3 and $10.8 will act as support levels. 

The price of ATOM respects the uptrend line formed by prices as the trendline acts as support in case the 50 and 200 EMA can not hold the price of ATOM during a sell-off.

Four-Hourly (4H) resistance for ATOM price – $16.

Four-Hourly (4H) support for ATOM price – $11.3, $10.8.

Featured Image From Fintechs, Charts From TradingView.com

by jamesobande on August 25, 2022 at 01:46AM