Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.
Since swopping to its 17-month low on 18 June, Cosmos (ATOM) bulls have been on a roll as they saved discovering more energizing highs during the last three months.
This bullish break transposed into a strong ascending channel on the every day timeframe. With present worth actions approaching the higher band of the Bollinger Bands (BB), ATOM may see a near-term decline earlier than a bullish rebound.
At press time, the alt was buying and selling at $15.681, down by 4.59% within the final 24 hours.
ATOM Day by day Chart
Supply: TradingView, ATOM/USDT
Regardless of the prevailing ‘concern’ sentiment within the crypto-market for the previous few months, ATOM defied the market-wide inclinations to register constant features on its chart.
The shopping for spree from its multi-month low in June set a strong basis for an ascending channel rally. This hike resulted in practically 182% returns till press time.
The bull run has positioned ATOM above the idea line of the BB for probably the most half. During the last three weeks, the idea line has offered reliable rebounding assist. On the opposite aspect, the higher trendline of the up-channel has coincided with the higher band of the BB to constrict the shopping for efforts.
A believable shut towards the idea line may inflict a near-term bounce-back on the chart. In these circumstances, ATOM may see restoration in direction of the $17-$17.4 vary. Contrarily, a sustained decline under the idea line would trace at a retest of the decrease trendline of the up-channel.
Rationale
Supply: TradingView, ATOM/USDT
The bullish Relative Energy Index (RSI) retraced from the overbought stage because it marked decrease peaks to mark a slight bearish divergence. This decline reaffirmed the energy of the sellers close to the $17-resistance.
Equally, the Quantity Oscillator (VO) witnessed a downtrend in the course of the coin’s latest features to depict a slight shopping for weak point available in the market. Nonetheless, the MACD strains continued to depict a robust shopping for edge on this timeframe.
Conclusion
Contemplating the intersection between the idea line and the horizontal assist within the $13.6-zone, ATOM unveiled rebounding tendencies. A fall under the idea line would invalidate these bullish inclinations. The targets would stay the identical as mentioned.
Finally, market sentiment evaluation to enhance these technical elements is important for making a worthwhile transfer.
