The ATOM price reaches the Cosmos, but why?
Like all altcoins, ATOM price fell as $550 million in BTC, ETH and altcoin positions were liquidated last week, which is exactly why his 35% rebound is raising eyebrows.
Altcoin Watch
When a stock market crash occurs, assets become oversold and there is usually an "oversold bounce", "mean reversion", "mean reversion" or some rally in price towards the bottom of the pre-crash range.
Thereafter, the asset studied consolidates, continues the downtrend or returns to the uptrend if the bearish catalyst was not strong enough to break the market structure. That's all basic trading 101.
This week, Cosmos (ATOM) price seems to be following this path, and the altcoin is showing some strength with a 35% gain since August 22nd. But why?
Depending on how you look at it, and technical analysis is by all means a subjective process, ATOM price is either in an ascending channel or it could be said that a rounded pattern is present with price near to break above the neckline.
ATOM daily chart. Source: TradingviewResistance above $13 (the horizontal black line in the bottom chart) is currently about to be tested, and with volume and " sufficient stability in the broader crypto market, price could be on its way to the 200-day moving average at $17.20.
Of course, if Bitcoin goes bankrupt at the daily close, or hawkish talk starts coming out of Jackson Hole, the entire bullish structure of ATOM is likely kaput. So if you're negotiating, be prepared and size accordingly.
If the price manages to reach the $17 area, without skipping a beat, then your favorite technical analysts will say something like:
"If ATOM price manages to tip the 200-MA towards support, a continuation towards the $27 level could occur."
You've probably seen this on Crypto Twitter lately, but let me find an example.
I bought this new $ATOM test because it is the market leader
Looking for a move towards $14.4 as long as the lows hold here. pic.twitter.com/Fj...
Like all altcoins, ATOM price fell as $550 million in BTC, ETH and altcoin positions were liquidated last week, which is exactly why his 35% rebound is raising eyebrows.
Altcoin Watch
When a stock market crash occurs, assets become oversold and there is usually an "oversold bounce", "mean reversion", "mean reversion" or some rally in price towards the bottom of the pre-crash range.
Thereafter, the asset studied consolidates, continues the downtrend or returns to the uptrend if the bearish catalyst was not strong enough to break the market structure. That's all basic trading 101.
This week, Cosmos (ATOM) price seems to be following this path, and the altcoin is showing some strength with a 35% gain since August 22nd. But why?
Depending on how you look at it, and technical analysis is by all means a subjective process, ATOM price is either in an ascending channel or it could be said that a rounded pattern is present with price near to break above the neckline.
ATOM daily chart. Source: TradingviewResistance above $13 (the horizontal black line in the bottom chart) is currently about to be tested, and with volume and " sufficient stability in the broader crypto market, price could be on its way to the 200-day moving average at $17.20.
Of course, if Bitcoin goes bankrupt at the daily close, or hawkish talk starts coming out of Jackson Hole, the entire bullish structure of ATOM is likely kaput. So if you're negotiating, be prepared and size accordingly.
If the price manages to reach the $17 area, without skipping a beat, then your favorite technical analysts will say something like:
"If ATOM price manages to tip the 200-MA towards support, a continuation towards the $27 level could occur."
You've probably seen this on Crypto Twitter lately, but let me find an example.
I bought this new $ATOM test because it is the market leader
Looking for a move towards $14.4 as long as the lows hold here. pic.twitter.com/Fj...
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