Cosmos [ATOM] forms a range; here’s why the bulls eye the $17.5-target
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
- ATOM seemed to trade within a 2-month range
- Momentum back in favor of the bulls after last week’s rally
Cosmos [ATOM] had a bullish outlook on the charts on the higher timeframes once more. The key level of resistance at $13.5 had been broken. The $13.1-$13.3 area was important on lower timeframes, and this zone was also flipped to support.
Here’s AMBCrypto’s Price Prediction for Cosmos [ATOM] in 2022-23
The AI predicts an optimistic scenario of a surge to $24, but the more bearish scenario of a revisit to $11 appeared more likely. This, because of the formation of the range in August.
Range highs at $16.7 and ATOM is likely to head north soonATOM formed a range (white) on the price charts from $10.5 to $16.6. The mid-point of this range lay at $13.5. Over the past two days, ATOM was able to climb past this resistance level and flip it to support. The 1-day RSI also climbed above the neutral 50-mark to highlight bullish momentum.
On the other hand, the CMF has been tepid over the past two weeks. It meandered between the -0.05 and +0.05 levels and did not show significant capital flow into or out of the market.
Above the range highs at $16.6 lay a bearish order block at $19. This order block was based on the daily timeframe and ATOM last traded above this zone in early May.
Hence, in the coming weeks, the $16.5-$17 zone can be a place for long positions to take profits. Even a push into the $19 zone would not indicate a victory for the bulls. Rather, a heightened amount of selling could be the result of such a move.
Weighted sentiment spikes positive, development activity also highIn recent weeks, development activity has been high. It has been appreciably high since mid-August. Therefore, investors can have some confidence in the $7.7 billion market cap asset. Over the same period, the weighted sentiment has also seen highly positive spikes on certain days.
The last 24 hours saw momentum swing in favor of bullish speculators, as evidenced by the Long/Short ratio. This ratio showed 50.6% of the speculators to lean bullish in this period.
The technical indicators did not show heavy buying pressure, but the price action revealed a bullish market structure. The ascent above the mid-range level also seemed to be an encouraging development. If Bitcoin can defend the $20k-$20.2k short-term support zone, it is likely that both BTC and DOT will have room to expand to the upside.