« The internet of blockchains ”: this is the famous motto of Cosmos, a project which focuses on the development, as its name suggests, of a network of blockchains. The aim is to facilitate interoperability, while maintaining security and low transaction costs. ATOM, Cosmos’ native cryptocurrency, allows interaction with the entire ecosystem, including decentralized applications (dApps) or the benefits of staking. Besides the fundamental aspect, which seems to be in turmoil in recent weeks with many new features, what to say regarding the graphical evolution of the ATOM token?
The technical analysis of the day is offered to you in collaboration with the Coin trading and its algorithmic trading solution finally accessible to individuals.
ATOM facing a major level once morest bitcoin
ATOM’s situation once morest bitcoin (BTC), on a weekly basis, is very interesting. After registering a low point January 4, 2021 to 1,431 satoshis (red arc of a circle), the token gradually relaunched in an uptrend, registering higher peaks and troughs than the previous ones. These have been materialized with arcs of green circles to make the graph easier to read.
In addition, we have an oblique support line which perfectly materializes the superiority of buyers facing the sellers, the latter failing to reverse the trend with a lower trough than the previous one.
Currently, ATOM is facing a major level at 9,300-9,600 satoshis which, since March and April 2019, has been resisting the price. A recent breakout attempt took place last September, resulting in failure, causing the token to return to an old area of resistance to 3 930-4 320 satoshis. Fairly quickly, the price rebounded, bringing it once once more to its resistance that we mentioned earlier.
What is the goal ? In the event of a breakout higher of this level with a close above 9600 satoshis, we would have a whole new high following 1,029 days. Therefore, the signal would be interesting, since ATOM might continue to gain strength once morest bitcoin. Under this bullish scenario, where the price would move in this way, we might hope for a return, in the first place to 12,967 satoshis. It is a level where the price had entered, on 2 occasions, an important wick signifying the probable relevance of this level.
Conversely, in the event of yet another rejection on resistance, sellers might take the opportunity to regain control over buyers. Therefore, we must have in mind 2 levels. On the one hand, a first zone to 5 180-5 450 satoshis, corresponding to an old resistance. On the other hand, the support that we had the opportunity to mention previously at 3 930-4 320 satoshis.
ATOM near its highest peak once morest the dollar
Unlike the previous chart where we were weekly once morest bitcoin, I will switch to the daily scale once morest the dollar to show you, with more detailed fluctuations, the key levels that we need to watch.
Notice, first, the relevance of the gray area at the bottom of the graph to 9,10-9,50 dollars. The price came to rest on contact with this zone on several occasions during the last summer, corresponding to the ATH (highest peak) of the ATOM in January 2021. Subsequently, the price revived by powerful way by registering a whole new high at $ 44.80 September 19.
The following weeks, following a period of lateralization under ATH, ATOM has entered a downtrend with higher and lower highs and lows. You can see it with this oblique resistance which materializes the inability of buyers to turn the trend around for several weeks. After having made an old weekly resistance to 20,60-21,60 dollars a support, the price has recently relaunched to conquer new heights, now bringing it to the doors of its ATH.
In case of close above $ 44.80, we would have the highest peak since September 19, signaling a strong take-off from buyers versus sellers. In this case, the ATOM will be in price discovery, no more resistance in its path. Consequently, besides indicators, such as Fibonacci to determine new resistance, or oscillators, such as the RSI which allow to have a view on the strength of the trend and its potential for running out of steam, you can reason in a simple way in analysis. technique with the use of round numbers. You can, for example, monitor 50 dollars as well as 60 dollars which can correspond to profit-taking zones for investors.
However, in the event of rejection on $ 44.80, we can monitor different technical levels that can act as probable supports:
- The 39 dollars corresponding to the highest gray area;
- The 37 dollars who acted as support and resistance in the past;
- The area of 30,5-32,8 dollars which have also acted as support and resistance in the past.
You are now ready to monitor the evolution of ATOM over the next few weeks. Whether it is once morest the bitcoin or the dollar, you may notice one relevant element: the token is facing major resistance that it must cross if it wishes to set off to meet new highs. On the other hand, watch for the supports mentioned in this analysis in the event that we have, under a bearish scenario, a rejection of the ATOM on its resistance. Besides technical analysis, do you want to learn more regarding the fundamentals of the project? Do not wait any longer ! Discover one of our recent videos which treats the subject on many aspects !
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