- The ATOM coin surges above the previous week’s high price of $10.78.
- The current bullish rally has given a breakout from a bullish flag pattern.
- Technical indicators’ summary suggested a buy signal in the current trading phase.
Cosmos (ATOM) provides solutions for some of the most complex problems facing the blockchain industry. The project aims to slow down expensive, unscalable, and environmentally harmful proof-of-work (PoW) protocols by offering an ecosystem of connected blockchains. Cosmos network uses a proof-of-stake (PoW) consensus algorithm. It allows validators with a higher stake in ATOM tokens to be more likely to choose to verify transactions and earn rewards.
ATOM Coin Become Popular During the Last Six Months
ATOM coin price gave a breakout from a trendline forming since January 2023. In October 2023, the price surged over 30% from the $6.17 support level, resulting in a breakout of the $7.91 resistance level. Afterward, the price retraces to $7.58.
The retracement gave a boost to the crypto investors because of the breakout that happened earlier. As a result, they started jumping on the $7.58 level and led the ATOM coin price to the $10.26 major supply level.
ATOM coin price pumped more than 40% during that rally. Conversely, the bears failed to maintain selling pressure on the $10.26 major supply level. The price took support on the $8.22 and surged over 50% to the $12.59 resistance level.
Subsequently, ATOM coin price made a bullish correction in the form of a bullish flag recently broken by the bulls. The current price is also performing 74.49% below its all-time high price, which is at $44.70.
Technical Analysis of the ATOM Coin Price
The ATOM coin price has recently rebounded by the 50-day and the 200-day EMAs, reflecting an uptrend. The bullish crossover point of the EMAs supported the price prevented from falling.
According to the price action, the ATOM coin price has given a breakout from a bullish flag at the $9.04 demand level. The price increased 21% from the breakout level and created a decisional point of interest at the $9.89 level.
The price took support from the decisional point of interest and is moving upward for eight consecutive days. ATOM coin’s price may reach the $12.59 resistance soon. If the price sustains above, it may again rise to the $14.57 resistance.
The relative strength index (RSI) line is showing more strength toward the 70-mark upper band. It indicates that the buyers have more control over price than their counterparts. The RSI slope is at 67.49 above the signal line.
Summary
The ATOM coin price is moving in an uptrend. Recently, the price gave a breakout from a bullish flag pattern. The summary of technical indicators suggested a buy signal in the current trading phase. At present, the price is moving toward the $12.59 resistance. If the price sustains above that resistance, it may also rise to $14.57.
Technical Levels
- Resistance Levels: $12.59 and $14.57
- Support Levels: $9.89 and $8.69
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading stocks and crypto comes with a risk of financial loss.