ATOM Technical Analysis: Reversal in Rising Wedge Teases 25% Jump
Cosmos aims to create an internet of crypto networks connected by open-source tools that can be used to facilitate transactions between the networks. It's this emphasis on customization and interoperability that set Cosmos above other software projects.
Instead of focusing on the network it is part of, its aim is to build a network of networks that share information and tokens on a computer programmatically without a central authority in charge of the operation.
Let us move ahead to read about ATOM technical analysis.
Past Performance of ATOM
The ATOM coin prices grew almost 20% in the last 48 hours resulting in a bullish recovery in the rising wedge pattern. The bullish engulfing candle near the support trendline of the wedge pattern which increases the chances of reversal. The 40% jump in the intraday trading volume suggests a rise in the buying pressure.
Therefore, the price action hints at a 25% price jump to the resistance trendline.
ATOM Technical Analysis
The ATOM coin price action shows a rising wedge pattern in the daily chart. Moreover, the lower price rejection near the support trendline suggests the ideology of a bullish reversal.
The crucial EMAs (50, 100, and 200) in the 24-hour timeframe maintain a bullish alignment, and the 50 and 100 day EMAs give a bullish crossover indicating a rise in buying pressure.
The ATOM price action indicates resistance pivot level at $45 and $56 above $40. The support levels are at $35 and $30 which can halt a sudden bearish U-turn.
The RSI indicator at 60% shows a bullish reversal from the central mark in the daily chart. Moreover, the slope shows a bullish crossover with the 14-day SMA. Therefore, it indicates a bullish revolt to continue the uptrend.
The MACD indicator shows the fast line flattening near the slow line reflecting the line avoiding a bullish crossover. Therefore, the bulls are not ready to give up the trend control.
Upcoming Trend
The ATOM technical analysis shows an upside continuation in the rising wedge pattern in the daily chart. Moreover, the technical indicators and the price action tease a bullish reversal to the resistance trendline.
Therefore, traders can find a bullish continuation to the resistance trendline if the prices sustain above $40.
