Cosmos [ATOM] is gathering steam, but what are the chances of a breakout

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

• ATOM consolidates beneath resistance, OI down barely
• A bullish breakout might rely largely on a transfer above $19.6k for Bitcoin

The discharge of the Cosmos Hub Roadmap 2.0 gave a one-year guideline wherein stakeholders can anticipate up to date options on the Cosmos Hub. It absolutely captured a number of the traders’ consideration. A current article highlighted how ATOM additionally famous a slight optimistic change by way of developer exercise and TVL in Q3.

Right here’s AMBCrypto’s Value Prediction for Cosmos [ATOM] in 2022

The worth charts weren’t as rosy, particularly on the decrease timeframes. Bitcoin stuttered across the $19.4k-mark at press time. Though it sat atop assist, the rejection at $20.4k just a few days in the past meant the momentum favoured the bears. Can ATOM see a bullish breakout in these situations?

ATOM stalls, however decrease timeframe construction stays bullish

Supply: ATOM/USDT on TradingView

Over the previous week, the worth has shaped a collection of upper lows. Extra importantly, it broke the earlier decrease highs at $12.54 and $12.84 to ascertain a short-term uptrend. This was extra of a bounce for greater timeframe charts, and this bounce confronted stiff resistance within the $13.4-area.

The ascending trendline (white) might provide some assist to the worth. A session shut under $13 would flip the decrease timeframe construction to bearish but once more. This might see the worth drop again to the $12.35-$12.4 assist zone.

Then again, a transfer above $13.4 would doubtless presage a powerful transfer north for ATOM. Such a transfer might push the alt to $14 and presumably, as excessive as $14.8, which represented a area of resistance from late September.

The RSI stood at 46. Though it fell under impartial 50, it didn’t present bearish momentum but on the time of writing. The OBV was additionally flat. This advised that neither the consumers nor the sellers had been significantly robust. It additionally meant {that a} bullish breakout may very well be extra unlikely.

Open Curiosity dips as brief sellers discover a small benefit

Supply: Coinglass

Coinglass information revealed that the earlier 24 hours had a slight bearish skew on the Futures market. The Lengthy/Brief ratio indicated the bears had a slight numerical benefit. The funding rate for ATOM was in adverse territory. This meant brief positions paid funding to longs. The 24-hour Open Interest behind ATOM additionally declined by 2.4%, on the time of writing.

Taken collectively, the shopping for stress didn’t appear adequate to pressure a bullish transfer on the worth charts. And but, Bitcoin stood above its $19k assist. Therefore, a bounce might slowly drag ATOM north as nicely. To the south, a revisit to the $12.4-level might provide a short-term shopping for alternative and a extra bearish situation might see ATOM fall to $10.6.