Altcoins

Cosmos: ATOM likely to see a bounce, but how high can it reach

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation

The pattern throughout the altcoin market remained extraordinarily bearish on the decrease timeframes just lately. Cosmos was not an exception, as its market construction remained bearish as the value shaped a collection of decrease highs and decrease lows. Bitcoin hovered within the space between $30k and $32k however has not but capitulated regardless of the sturdy worry out there.

ATOM- 2 Hour Chart

Cosmos: ATOM likely to see a bounce, but how high can it reach?

Supply: ATOM/USDT on TradingView

Is a capitulation occasion across the nook, or was Bitcoin’s transient foray beneath the $30k mark the day prior to this enough to kind a market backside? How will this have an effect on ATOM? For starters, ATOM has moved just like Bitcoin on the charts. This isn’t a exceptional remark, as the value motion of many altcoins is kind of intently correlated to Bitcoin’s.

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On the time of writing, ATOM shaped a bullish divergence with the momentum and OBV indicators. This advised that ATOM may see a bounce in worth within the hours to come back.

The $12.5 is the primary goal of this contrarian transfer, because it marked the native backside a few days in the past. Barely additional north is the $13-$13.3 space, which noticed some demand a couple of hours in the past earlier than ATOM got here crashing down.

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Due to this fact, these are the 2 areas the place sellers are prone to be sturdy, and a brief place could possibly be opened.

Rationale

Cosmos: ATOM likely to see a bounce, but how high can it reach?

Supply: ATOM/USDT on TradingView

The RSI made a better low (white) whilst the value made a decrease low, which is a powerful bullish divergence. Despite the fact that the RSI has been under impartial 50 over the previous week, denoting a bearish pattern, this divergence hinted at a bounce. The identical story with the OBV- whereas it has been on a downtrend up to now week, it additionally confirmed some real purchase quantity up to now two days.

The Superior Oscillator was additionally beneath the zero line, however the peak it made under the zero line was decrease, which indicated a weaker bearish momentum and a potential bounce within the subsequent few hours.

Conclusion

A bounce to $12.5 or the $13-$13.2 space could possibly be seen within the subsequent few hours. Nevertheless, past that, Cosmos may battle to make features. Therefore, moderately than seeking to purchase the asset, ready for extra favorable situations and even shorting the asset across the $13 mark could possibly be an choice.

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