Cosmos prices could jump past $10.6 if…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The price action of Cosmos showed that bulls had the upper hand over the past month.
- If their struggles bore fruit, ATOM prices could jump past the $10.6 level in the coming weeks.
Cosmos [ATOM] bulls succeeded in defending the $9 support level over the past few days. While the sellers did not have much luck pushing prices below $9, neither did the bulls win the battle to seize control of the $10.2 resistance.
Read Cosmos’ [ATOM] Price Prediction 2023-24
However, Cosmos could present a buying opportunity for traders with different time horizons based on its reaction to key resistance levels overhead. Bitcoin [BTC] hovered just above the $30k mark but if it saw a move higher, ATOM would likely follow.
ATOM presented two long trades but the criteria could be hard to meetDespite being near the range lows, Bitcoin did not have a short-term bullish outlook. If BTC posted losses, ATOM was likely to follow. This was the only bearish argument for ATOM in the short term.
The token has bounced from the trendline support (green) multiple times and reached the $10.1 and $10.28 levels in July. This was a sign of bullish intent and each retest of the $10.2 resistance zone would likely weaken the sellers.
The 12-hour chart showed the RSI was climbing back above the neutral 50 mark, which encouraged the buyers. Yet the OBV did not see an uptrend in the past month. There were a few upward spikes followed by full retracements on the indicator, which suggested that buying pressure was not powerful enough to break the resistance yet.
Therefore, positional traders can look to buy ATOM if the price breaches the $10.6 mark and retests the $10.2 level. The $10.2-$10.6 region acted as a former support zone from March to June, and will likely be packed with sellers upon a retest.
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The lower timeframe charts showed strong bullish convictionFrom 18 July onward, the prices started climbing higher on the 1-hour chart and broke the previous bearish structure a few hours before press time. This was accompanied by a large rally in the Open Interest. The OI climbed from $71.6 million to $75.8 million, showing an influx of capital and bullish sentiment.
The spot CVD has been flat over the past 24 hours, suggesting buying pressure was not dominant. Overall, if the bulls can beat the $9.6-$9.8 resistance region, a retest can provide a scalping opportunity targeting $10.2. The short-term idea would be invalidated upon a drop below the $9.6 level.