For those who purchased ATOM at or close to its backside in June and are nonetheless holding the bag, then you need to be happy together with your determination. The truth is, the cryptocurrency has maintained an general bullish trajectory ever because it pivoted after a significant crash earlier this 12 months.
ATOM has been buying and selling inside an ascending vary and its newest value motion signifies that its bulls are rising stronger. Moreover, it has concluded the week as one of many market’s best-performing cryptos.
ATOM has seen a 48% uptick since Wednesday after bouncing from simply above its assist line and its 50-day Transferring Common. Curiously, the rally was robust sufficient to push above its resistance line, in addition to its 200-day MA.
Supply: TradingView
Now, though ATOM’s robust rally this week is an indication that that the bulls have gotten stronger, there are indicators of a possible pullback.
As an illustration, the altcoin briefly turned overbought, in keeping with the RSI, with the upside already yielding some profit-taking.
Supply: TradingView
Assessing the bullish triggers
The upside obtained robust assist from the sustained hike in market sentiment within the second half of the week. ATOM’s rally was notably underpinned by a pointy uptick in social dominance and growth exercise.
Supply: Santiment
Cosmos’s development-related bulletins through the week embody a brand new cosmos SDK upgrade. The latter focuses on teams and governance-related upgrades designed to enhance the Cosmos SDK.
The opposite main growth is the addition of a brand new venture known as Delphi Digital into the Cosmos ecosystem. The brand new addition will assist simpler growth of interconnected DApps, therefore contributing to Cosmos’s progress.
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Welcome to the Interchain @Delphi_Digital – the ever-expanding ecosystem of interconnected apps and providers, constructed for a decentralized future! ⚛️ pic.twitter.com/WKpnU6n14k— Cosmos – Web of Blockchains ⚛️ (@cosmos) September 9, 2022
Is it sufficient to assist a powerful breakout?
ATOM’s press time value motion appeared prepared for a powerful bullish push, particularly after its efficiency over the previous few days. The cryptocurrency may see extra upside if backed by a powerful bullish market outlook. That means, it could leverage the already present momentum as a result of merchants would HODL in anticipation of upper costs.
The opposite facet of the altcoin would function a retracement attributable to revenue taking after its most up-to-date rally. Merchants planning to execute quick positions can reap the benefits of such a chance. Shorts merchants ought to hold an eye fixed out for a bearish market outlook. This, as a result of such an final result would assist a powerful pullback.
