ATOM has demonstrated considerable resilience during the recent market-wide rally, reclaiming important levels such as the 200-day EMA. Despite mixed sentiments in the derivatives data, with a slight advantage for the bears, Cosmos [ATOM] has surged by nearly 65% in just two weeks, riding the overall bullish momentum in the market. This altcoin has seen significant gains, surpassing the critical 200-day EMA and confirming a bullish outlook. Traders need to monitor key price levels closely as the price action nears a crucial resistance point.
Recent price action and EMA overview indicate that ATOM’s price action has formed a rising wedge pattern, showing both increasing buying pressure and a potential peak in the rally. The current price of ATOM stands at $6.18, below a critical resistance of $6.59, with strong pressure from the rising wedge’s upper boundary. The 20-day EMA at $5.33 and 50-day EMA at $4.92 have provided solid support during the rally, enabling ATOM to break above the 200-day EMA at $5.88, signaling a potential long-term trend reversal in favor of the bulls.
The MACD has shown a bullish crossover, with the MACD line above the Signal line in positive territory, indicating sustained buying pressure. Additionally, the RSI remains at 64, suggesting dominant buying pressure but leaving room for a potential correction if bulls fail to drive prices above the current resistance level. In the event of a break below the 200-day EMA, ATOM’s immediate support lies in the $4.9-$5.3 range, while the altcoin faces immediate resistance at $6.59, coinciding with the rising wedge’s upper boundary.
Derivatives data shows that ATOM’s trading volume has decreased by 34.55% over the last 24 hours, reflecting cautious participation from traders. Open Interest also decreased by 4.14%, indicating that some traders closed their positions amidst recent volatility, possibly to lock in gains. The long/short ratio stands at 0.932, suggesting a relatively balanced market sentiment with a slight tilt towards short positions. However, data from Binance and OKX paint a more optimistic picture, with long/short ratios for ATOM/USDT standing at 3.288 and 2.94, respectively, indicating anticipation of a continued rally.
As traders navigate the market, it is crucial to closely monitor Bitcoin’s price action, as broader market sentiment is likely to influence ATOM’s next moves. With key levels to watch and potential support and resistance levels in place, careful analysis and attention to market dynamics will contribute to informed decision-making for traders looking to capitalize on ATOM’s recent performance in the crypto market.
