Cosmos (ATOM) turns bullish after creating a bullish divergence, Cosmos (ATOM) has been rising since June 18 and made a first higher low on June 30. It is in the process of breaking above the short-term resistance line.
Weekly outlook
Cosmos (ATOM) has been falling since January 2022, when it peaked at $44.56. The downtrend so far has led to a low of $5.55 in June. The drop also caused a break below an ascending support line that has been in place since the March 2020 low. Breaks of such long-term structures often signify a trend break.
The low was made right at the 0.5 Fib retracement level when measuring all the upward movement since March 2020 and started a slight recovery. However, there is no sign of a bullish reversal even though the weekly RSI is in the oversold territory.
Daily RSI is bullish
The daily chart offers a more optimistic outlook than the weekly chart. The reason for this is that the RSI reading is extremely bullish.
After creating a bullish divergence (green line), the RSI moved above its oversold zone and successfully completed a Failure swing bottom, which is another bullish development. The RSI is currently approaching the 50 level. A recapture of this level could confirm that the trend will reverse to the upside.
In that case, the nearest resistance area is at $12.20.
ATOM bounces in the short term
Trader @IncomeSharks tweeted a chart of Cosmos (ATOM), saying that the price could rally to $8 in the short term.
Finally, the two-hour chart shows that the price is in the process of breaking above the short-term descending resistance line, which has been in place since June 27. Additionally, the RSI is above 50 (green symbol). ), which is considered to be a sign of an uptrend. Since the price has made at least five breakouts, a final breakout is expected.
If the two upward movements (highlighted) have a 1:1 ratio, the Cosmos (ATOM) will rise to $10. If they instead have a 1:1,61 ratio, it will rise to $12, which is very close. with the previously outlined resistance zone.
You can see ATOM prices here .
Source: Beincrypto
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