Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.
Bitcoin [BTC] has traded at an fascinating place previously few hours. The worth managed to bounce from $18.6k and retested the $19.2k mark as help the day past. 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 previous the $12 degree signaled that bulls may have regained some energy.
ATOM- 1-Day Chart
The $13.95-$15.1 area was highlighted by the pink field. The $12.2 worth has acted as resistance previously two months. The longer-term bias for ATOM had been bearish in July. Nonetheless, the worth climbed previous the $9.5 resistance in early August. This urged that the momentum turned in favor of the bulls.
On the time of writing, ATOM approached the $14-$15 provide zone, marked by the pink field. Rejection from this resistance may happen. Again in Might, the worth examined this space as resistance earlier than plunging additional. Subsequently, within the subsequent few days, this area may act as vital resistance.
Rationale
The Relative Power 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 2 months which meant that the momentum of Cosmos was noticeably bullish.
Nonetheless, the Directional Motion Index (DMI) didn’t agree with this discovering. The ADX (yellow) was under the 20 worth, whereas the -DI (pink) and +DI (inexperienced) snaked concerning the 20 mark. Therefore, the indicator pointed towards an absence of a major development within the day by day timeframe.
The Chaikin Cash Stream (CMF) has been above the zero line. It additionally noticed occasional forays above the +0.05 worth, to point out elevated shopping for strain. Taken collectively, the indications confirmed the presence of some shopping for strain and bullish demand. But, the development was not strongly pointed upward for ATOM.
Conclusion
If the bulls can break above the $15 resistance zone and flip it to demand, additional beneficial properties may be anticipated. A retest of the $15 zone can provide a shopping for alternative focusing on $17.4 and $20.5, with a stop-loss under $14. Nonetheless, some sideways motion may come up with ATOM simply beneath resistance.