ATOM Technical Analysis: Bullish Reversal Can Complete Double Bottom Patterned

The constant support from the $26 support zone forms a double bottom pattern in the daily chart. Hence, a bullish reversal in ATOM can bring an entry spot.

Cosmos is a distributed network of parallel blockchains that uses BFT consensus algorithms like Tendermint’s. Its purpose is to allow developers to create application-specific blockchains that can communicate with each other and break down barriers between them. 

Cosmos is building the Cosmos Hub, which is a network of decentralized, interoperable, scalable, and independent blockchains.

Let us now move ahead to the technical analysis of the ATOM token.

Past Performance of ATOM

The ATOM coin price shows retracement from the $45 resistance zone to the $26 support zone in the daily chart. Thus, resulting in a 38 percent downfall. 

However, the constant support from the $26 support zone teases a double bottom pattern. Hence, a bullish breakout of this pattern can be an excellent entry opportunity.

ATOM/USD Daily Chart

ATOM Technical Analysis

The ATOM coin prices show lower price rejection evident by the long tail candles forming near the support zone. However, buyers need to be patient till the price pattern completes its structure in the daily chart. 

The RSI slope shows exaggerated bullish divergence with the price action taking support at the $26 level. Moreover, the slope spikes higher after an encounter with the oversold zone. Hence, the RSI indicator forecasts growth in ATOM coin prices.

The Moving Average Convergence Divergence indicator gives similar results compared to the RSI. The fast and slow lines give bullish divergence similar to the RSI. however, the lines maintain bearish alignment. Hence, MACD-based traders need to wait till the lines give a bullish crossover. 

Upcoming Trend

The ATOM coin price action is forming a textbook double bottom pattern if it manages to get a bullish reversal. Hence, buying opportunity awaits the $32 breakout. 

However, the uptrend can face resistance near the $37 and $44 mark. And, in case the price falls below the $26 mark, the support levels at $23 and $17 mark.

Tags

Share this post:

Share on facebook
Share on twitter
Share on pinterest

Post comment

Your email address will not be published. Required fields are marked *