- The RSI indicates a substantial bearish divergence from the ATOM coin’s price action
- The ATOM/BTC pairing traded at 0.0008161 BTC, with a gain of 12.18 %
- The ATOM coin’s 24hr trading volume is $1.9 Billion
As mentioned in my previous article on Cosmos, the ATOM coins provided an excellent opportunity for Crypto traders with the breakout rounded bottom pattern within the daily timeframe. This pattern’s key resistance (neckline) was located at the $3 mark, and on 13th September, the price provided a breakthrough from it, supported by a strong surge in trading volume. Later on 16th September, the prince gave a proper retest to the broken level, triggering the entry signal for ATOM traders. Hence, the coin price continues to rise is currently trading at 39.2, with an intraday gain of 15.03%.
According to the EMA’s, the ATOM coin price is trading high above the crucial EMA’S 20, 50, 100, and 200, indicating a strong bullish trend.
The RSI value is BULLISH at 73, indicating a bullish sentiment for this coin. However, the RSI line shows significant bearish divergence regarding the coin’s price, suggesting some weakness in bullish momentum.
ATOM Coin Displays A Breakout From A Double Bottom Pattern In The 4hr Time Frame
For the retest phase of the above-mentioned bullish pattern, the ATOM coin showcased a double bottom pattern formation in its lower time frame—the neckline for this pattern in the traditional pivot level R1 or $38 mark. The price still needs to provide the closing of its 4-hr candle to confirm this breakout.
The Moving average convergence divergence indicator (MACD) shows that both the MACD and signal lines are above the neutral area (0.00), indicating bullishness in the ATOM coin. Moreover, this line also provides a bullish crossover, providing more confirmation to the above pattern.
Conclusion: from the technical perspective, the ATOM coin indicates a great bullish outlook concerning its price action and indicators, providing the Crypto traders a fantastic opportunity to look for long trades in this coin.
As mentioned above, the coin reveals another entry opportunity its trades with a double bottom breakout, which is also a great location to increase the quantity in an ongoing position if the price sustains this breakout.
Support – $31.8
Resistance- traditional pivot level ‘R2.’