Connect with us
Active Currencies 14778
Market Cap $2,557,616,555,646.10
Bitcoin Share 51.24%
24h Market Cap Change $0.70

ATOM price rebounds, is a $13 prediction on the cards?

2min Read

ATOM’s one-day price chart shows that the market structure is bullish.

ATOM price rebounds, is a $13 prediction on the cards?

Share this article

  • ATOM maintained its bullish bias despite short-term price volatility.
  • A move to $12.6 in the coming hours was likely, but it was unclear if the bulls could breach the HTF resistance.

Cosmos [ATOM] retraced by just over 17% from the 12th to the 18th of December. After revisiting the support level at $10.3, ATOM prices were quick to rebound. This hinted at a buyer-controlled market.

A recent AMBCrypto report highlighted that Cosmos’ network activity has dropped, even though prices have climbed higher. This could be a cause for concern among holders.

The $12.5 territory was still in bearish hands

Cosmos: This key resistance needs to be broken before the next leg higher

Source: ATOM/USDT on TradingView

The one-day chart of ATOM showed that the market structure was bullish. After a test of the $12.41 resistance, the 50% retracement level at $10.3 was revisited. Thereafter, ATOM prices continued higher.

The bearish order block at $12.4-$12.95 has presented a large obstacle to ATOM bulls in December. The bullish structure meant a move higher was likely. The RSI was at 62, showing strong upward momentum on the D1 timeframe.

The OBV was also trending higher since November. However, it has seen a lot of volatility as selling volume suddenly ramped up.

Despite this, the formation of higher lows showed buyers have the upper hand.

A short-term move to $12.6 was likely

Cosmos: This key resistance needs to be broken before the next leg higher

Source: Hyblock

The 12 hours before press time saw Bitcoin [BTC] prices bleed from $43.7k to $42.1k. Having collected the liquidity just above $42k, BTC prices appeared ready to ascend once more. This drop affected ATOM prices too.

ATOM fell to $11.75 and its Cumulative Liq Levels Delta dived into negative territory. AMBCrypto noted that this suggested that more participants were willing to go short. However, this development could see ATOM bounce higher to liquidate these late bears.


Is your portfolio green? Check out the ATOM Profit Calculator


The $12.3-$12.65 zone has multiple estimated liquidation levels of $1.5M or more. To the south, the $11.62-$11.7 region was a strong support zone. In the short term, it is expected that ATOM will climb to $12.6.

For swing traders, a move past $12.9 and a retest of the bearish OB would present a good buying opportunity, targeting $13.4 and $15.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.