Cosmos price analysis: Here is the trading strategy to recap ATOM price above the $10 mark

  • Cosmos (ATOM) price is performing well inside an ascending parallel channel on a lower price scale.
  • In the midst of an uptrend, buyers are holding ATOM price above the 20 and 50 day moving averages.
  • ATOM price is once again struggling with the $10 conceptual level level for the past few weeks.

The price of Cosmos (ATOM) then turned bullish after hitting a low of $5.55 in 2022. The bulls struggled to reverse the trend, but eventually succeeded. As a result, the price of ATOM has increased by nearly 74% over the past 20 days. And we can clearly see the trend as the bulls hold the price above the previous low.

On the 4-hour price scale, the ATOM coin is trading in an ascending parallel channel (chart above). Meanwhile, the bulls are approaching the resistance line of the next bullish pattern. At the time of writing, the asset was trading in the middle of the channel at $9.27. Moreover, after a prolonged struggle, important moving averages such as 20, 50, 100 and 200 are well below the live price.

During the bull rally, speculators can see the impact of market capitalization, where, according to the CMC, it has risen 3% in the past 24 hours to $2.6 billion. Additionally, the ATOM coin belonging to the bitcoin pair is slightly bullish by 1.5% at 0.0004277 satoshis.

Why do bulls fail to break through resistance?

On the daily price scale, buyers are holding ATOM price above the 20- and 50-day moving averages amid an uptrend. Thus, the 50 DMA has become an immediate support level. Despite the stability above 50 DAM, the trading volume is gradually decreasing, indicating less volatility for the ATOM coin.

Also, the daily RSI indicator is showing higher lows and is now trading above the 50 mark. overbought.

Conclusion

The $10 concept round of Cosmos (ATOM) is an important resistance level for investors. However, technical factors indicate a bullish trend for the coin, so traders can expect a bullish rally if the price breaks the immediate resistance.

Support level – $7.0 and $5.0

Resistance level – $10 and $20

Disclaimer

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

Garland K. Long