ATOM: Can bulls sustain rally for more gains?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ATOM bulls roared back to life with 10% gains in the last 24 hours.
- Sellers suffered massive losses in the aftermath of the bullish rally.
Cosmos [ATOM] registered 10.4% gains over the past day to consolidate its bullish rebound above the $7 price level. Previously, the bullish rebound from 12 September encountered a mild hurdle at the $7 resistance level.
Read Cosmos’ [ATOM] Price Prediction 2023-24
However, buyers rallied strongly to flip the level from resistance to support.
As of press time, ATOM traded at $7.3 with buyers keen to amplify long-term gains with a push to the $8 price zone. Meanwhile, Bitcoin [BTC] pushed from $26.8k to $27.3k within the past day to highlight strong bullish sentiment returning to the market.
Buyers claimed key resistance level to signal long-term bullish intent
Over the past week, ATOM buyers came out strongly to halt the altcoin’s price dip. The buying pressure between 12 September to 17 September took ATOM from $6.2 to $7 (resistance level).
This was also reflected in the Relative Strength Index (RSI) surging rapidly from 29 to 63, revealing the significant purchasing power of bulls.
Despite a slight dip at the $7 resistance, Bitcoin’s rally to $27k spurred another price pump for ATOM, with buyers successfully flipping the $7 price zone to support.
With the On Balance Volume (OBV) rising from 188 million to 191 million, buyers can expect to register more gains in the mid to long term. Profit levels exist for buyers at $8 and $8.5 before another price hurdle at the $8.9 resistance level.
Shorts can bid their time for a retracement at the $8 – $8.2 price zone, as it represents a lower low from the previous bearish swing.
How much are 1,10,100 ATOMs worth today?
Shorts caught out by bullish gains in the futures market
The 10% gains by bulls over the past day led to short losses worth $225.15k, as sellers were caught napping. This translated to 87.3% of the total liquidations over the period, according to liquidation data from Coinglass.
This highlighted the bullish demand for ATOM, with buyers looking to extend their advantage in the mid-term.