Altcoins

ATOM ventures past the $13.5 level — can the bulls push for further gains?

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.

Bitcoin [BTC] has traded at an attention-grabbing place prior to now few hours. The value managed to bounce from $18.6k and retested the $19.2k mark as assist the day past. In current weeks, the $20.5k-$20.8k space has posed some resistance to BTC. Cosmos [ATOM] has moved in tandem with the king of crypto. The token’s ascent previous the $12 stage signaled that bulls may have regained some energy.

ATOM- 1-Day Chart

Plotting the path forward for Cosmos [ATOM]- can $17.4 be tested soon?

Supply: ATOM/USDT on TradingView

The $13.95-$15.1 area was highlighted by the crimson field. The $12.2 worth has acted as resistance prior to now two months. The longer-term bias for ATOM had been bearish in July. Nevertheless, the value climbed previous the $9.5 resistance in early August. This urged that the momentum turned in favor of the bulls.

On the time of writing, ATOM approached the $14-$15 provide zone, marked by the crimson field. Rejection from this resistance may happen. Again in Could, the value examined this space as resistance earlier than plunging additional. Subsequently, within the subsequent few days, this area may act as essential resistance.

Rationale

Plotting the path forward for Cosmos [ATOM]- can $17.4 be tested soon?

Supply: ATOM/USDT on TradingView

The Relative Power Index (RSI) on the each day chart climbed above impartial 50 in late June. Since then, it has managed to remain above the 45 mark. The RSI was above impartial 50 for 2 months which meant that the momentum of Cosmos was noticeably bullish.

Nevertheless, the Directional Motion Index (DMI) didn’t agree with this discovering. The ADX (yellow) was under the 20 worth, whereas the -DI (crimson) and +DI (inexperienced) snaked in regards to the 20 mark. Therefore, the indicator pointed towards an absence of a major pattern within the each day timeframe.

The Chaikin Cash Circulate (CMF) has been above the zero line. It additionally noticed occasional forays above the +0.05 worth, to indicate elevated shopping for strain. Taken collectively, the symptoms confirmed the presence of some shopping for strain and bullish demand. But, the pattern was not strongly pointed upward for ATOM.

Conclusion

If the bulls can break above the $15 resistance zone and flip it to demand, additional beneficial properties could be anticipated. A retest of the $15 zone can provide a shopping for alternative concentrating on $17.4 and $20.5, with a stop-loss under $14. Nevertheless, some sideways motion may come up with ATOM simply beneath resistance.

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