Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.
In response to Coinglass data, the Lengthy vs Shorts for Cosmos [ATOM] was skewed barely in favor of the longs on well-liked exchanges akin to Binance, FTX, and Okex over the previous 24 hours. For a similar time interval, Bitcoin [BTC] was extra impartial and Ethereum [ETH] noticed a slight benefit to the quick positions by way of quantity.
Their bullish bias over the day before today was justified as ATOM posted sturdy beneficial properties from the $14.6 space. Can this momentum proceed over the weekend?
ATOM- 1-Hour Chart
A bit of greater than per week in the past ATOM noticed a powerful transfer up from $12.8 to $17.19. On the way in which up, the bulls had been truly rebuffed of their makes an attempt to climb previous $17. The lengthy higher candle wick confirmed {that a} excessive quantity of promote orders lay above $16.8.
Within the days that adopted, the value has stagnated slightly below the belt of resistance at $16.6 earlier than taking a pointy flip to the south. The Fibonacci retracement ranges (yellow) confirmed sturdy assist at $13.7 and $14.36 for the native token of Cosmos.
Over the subsequent day or two, a session shut under $15.86 would point out one other rejection from the resistance zone at $16.4. Then again, a transfer above $16.8 and $17.2 may spell shopping for alternatives for shorter timeframe merchants.
Rationale
The Relative Energy Index (RSI) was in strongly bullish territory over the previous few days. It stood at 56.5 on the hourly timeframe on the time of writing. It has stayed above impartial 50 line to point out that the momentum has been northward lately. However based mostly on the value motion, this might take a bearish shift over the subsequent few days.
Alongside the value, the Accumulation/Distribution (A/D) indicator additionally stood at a resistance zone. A breakout above the road (orange) marked on the indicator would present that purchasing stress was on the rise. This might result in a leg upward for Cosmos.
Conclusion
The indications confirmed that bullish momentum was sturdy up to now couple of days. ATOM succeeded in reaching the $15.9-$16.6 resistance zone. At press time, a rejection seemed probably for Cosmos. A breakout previous $16.8 may flip the bias to bullish as soon as extra.