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Active Currencies 14902
Market Cap $2,236,220,216,524.80
Bitcoin Share 50.86%
24h Market Cap Change $-2.36

Can ATOM walk past this level to bring in more demand for the week ahead

2min Read
Cosmos showed signs of near term bullishness, watch out for a possible retest of this support

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

The past two weeks have been pretty volatile for Cosmos on the price charts. There certainly has been some bullish impetus in the past couple of days, and demand has stepped in to drive ATOM prices higher. In the short term, it is expected that this bullishness could continue.

ATOM- 1H

Cosmos showed signs of near term bullishness, watch out for a possible retest of this support

Source: ATOM/USDT on TradingView

On the 1-hour chart of ATOM above, some important junctures in the past week for the price of ATOM were touched upon and explained. At the time of writing, ATOM had a bullish bias to it. Based on the swing high and swing low at $33.19 and $25.36, a set of Fibonacci retracement levels (yellow) was plotted. Once ATOM climbed above the 23.6% retracement level, the likelihood of further gains increased.

The market structure flipped from bearish to bullish when the $27.65 level (dotted green) was broken, and when the price retested this level to form a higher low, a near-term bullish structure was strengthened.

In the next few hours, a similar thing could occur. When the price broke out past the 50% retracement level ($29.28), it did so in a single session and smashed past $29.81 to reach $30.2. Such a candle, although very bullish, also presented the possibility that price would sweep the $29.28 level once more, collect liquidity and move further higher toward the band of resistance at $31.51.

Rationale

Cosmos showed signs of near term bullishness, watch out for a possible retest of this support

Source: ATOM/USDT on TradingView

The 1-hour RSI was in the overbought area, above 70. This by itself does not necessitate a pullback, and only highlighted the bullish strength of the previous day. The Cumulative Delta Volume indicator showed that selling volume was present but not quite intense when ATOM pulled back from $33 to $25.36. It also showed that the past few days have seen steady buying volume.

The CMF indicator was in the neutral area but has been climbing in the past few hours. If it can go above +0.05 it would show that significant capital flow was once more directed into the market, that is, buyers were strong once more.

Conclusion

A retest of $29.28 to test for demand followed by a move up toward $32 was a bullish scenario for ATOM in the next couple of days. Such a move appeared likely, but Bitcoin could also have an impact on the market. A move below $43k-$42k for BTC could drag Cosmos downward as well.

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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.
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