- Cosmos might offer a buying opportunity for traders with varying timeframes, depending on how it responds to crucial resistance levels.
- With a 7% upward movement, leveraging three times the initial investment could yield a remarkable 21% gain.
Over the recent days, Cosmos (ATOM) supporters managed to protect the $9 support level effectively. Despite the sellers’ attempts, they were unable to drive the prices below $9, and likewise, the bulls couldn’t overcome the $10.2 resistance.
Nevertheless, Cosmos might offer a buying opportunity for traders with varying timeframes, depending on how it responds to crucial resistance levels. As Bitcoin (BTC) remained slightly above the $30k mark, any upward movement in Bitcoin’s price could potentially influence ATOM’s price in a similar direction.
Even though Bitcoin was trading close to its lower range, it did not show a short-term bullish outlook. If BTC experienced losses, it was expected that ATOM would follow suit. This was the primary bearish argument for ATOM in the short term.
On the positive side, the token had repeatedly rebounded from the trendline support (indicated in green) and reached $10.1 and $10.28 in July. This demonstrated a bullish intent, and each retest of the $10.2 resistance zone was likely to weaken the selling pressure.
Looking at the 12-hour chart, the RSI was recovering above the neutral 50 mark, encouraging buyers. However, the OBV did not show a clear uptrend over the past month. There were occasional upward spikes followed by full retracements, indicating that the buying pressure wasn’t strong enough to break the resistance.
As a result, positional traders could consider buying ATOM if the price surpassed the $10.6 mark and retested the $10.2 level. The region between $10.2 and $10.6 had previously acted as a support zone from March to June and could potentially attract a significant number of sellers upon retesting.
Analyst’s Nuanced Perspective
Renowned crypto trading expert Ali Martinez recently revealed an intriguing discovery. After analyzing the latest chart, Martinez identified a falling wedge pattern in ATOM’s price, indicating the possibility of a significant surge in value, potentially reaching as high as $10.
Despite these insights, not all followers share the same sentiment about the recent price action. One dissenting voice has expressed skepticism, arguing that labeling a surge to $10 as a “pop” might be an exaggeration.
$ATOM also looks ready to pop! 🚀 GN pic.twitter.com/o2BndLovgk
— Ali (@ali_charts) July 19, 2023
Instead, the dissenting viewpoint suggests that a genuine “pop” should involve a more substantial increase, ranging from $15 to $18. The current movement in ATOM’s price appears to be a retracement to ensure market liquidity.
Responding to the dissenting viewpoint, the analyst offered a nuanced perspective, emphasizing the importance of aligning investment decisions with individual risk appetites. Martinez acknowledges that each investor’s approach may differ based on their comfort level with risk. With a 7% upward movement, leveraging three times the initial investment could yield a remarkable 21% gain.
In the meantime, an anonymous cryptocurrency trader expressed their intention to observe ATOM closely, aiming to establish $10.30 as a supportive level to consider a long position entry.
To the Cosmo legends who follow me, this one is for you as #ATOM does not get as much as it should do 💯
Coming up to an entry for me soon, i am looking for us to flip $10.30 into support for a long entry 💯 pic.twitter.com/TEeJ0eK2C5
— Crypto Tony (@CryptoTony__) July 14, 2023
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