Disclaimer: The findings of the following evaluation are the sole opinions of the author and shouldn’t be thought-about funding recommendation.
Bitcoin [BTC] has traded at an fascinating place in the past few hours. The value managed to bounce from $18.6k and retested the $19.2k mark as assist the earlier day. 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 past the $12 level signaled that bulls might have regained some power.
ATOM- 1-Day Chart
The $13.95-$15.1 area was highlighted by the crimson field. The $12.2 worth has acted as resistance in the past two months. The longer-term bias for ATOM had been bearish in July. However, the value climbed past the $9.5 resistance in early August. This prompt that the momentum turned in favor of the bulls.
At the time of writing, ATOM approached the $14-$15 provide zone, marked by the crimson field. Rejection from this resistance might happen. Back in May, the value examined this space as resistance earlier than plunging further. Therefore, in the subsequent few days, this area might act as necessary resistance.
The Relative Strength Index (RSI) on the day by 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 two months which meant that the momentum of Cosmos was noticeably bullish.
However, the Directional Movement Index (DMI) didn’t agree with this discovering. The ADX (yellow) was beneath the 20 worth, whereas the -DI (crimson) and +DI (inexperienced) snaked about the 20 mark. Hence, the indicator pointed towards an absence of a big pattern in the day by day timeframe.
The Chaikin Money Flow (CMF) has been above the zero line. It additionally noticed occasional forays above the +0.05 worth, to indicate elevated shopping for stress. Taken collectively, the indicators confirmed the presence of some shopping for stress and bullish demand. Yet, the pattern was not strongly pointed upward for ATOM.
If the bulls can break above the $15 resistance zone and flip it to demand, further beneficial properties can be anticipated. A retest of the $15 zone can supply a shopping for alternative concentrating on $17.4 and $20.5, with a stop-loss beneath $14. However, some sideways motion might come up with ATOM simply beneath resistance.