Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
ATOM could bring additional profits to investors.
Sentiment improved and trading volume increased slightly.
Cosmos [ATOM] posted more than 55% gains during the rally between mid-December 2022 and mid-January 2023. It rose from $8,496 to $13,379, just short of $14,000. But bulls faced successive bearish orders near $13,000, making it a critical supply zone.
At the time of writing, ATOM’s price correction was temporarily halted by the bullish order block at $11,714 support. Bulls could launch a massive recovery in the coming days or weeks if support proves stable.
Read Cosmos [ATOM] Price Predictions 2023-24
The $13,000 supply zone: Bull’s next target?
Source: ATOM/USDT on TradingView
On the 12-hour chart, the Relative Strength Index (RSI) pulled back from the overbought zone, but suffered a rejection in the mid-50s. While the RSI reading was at 51, indicating a mildly bullish signal, the Directional Movement Index (DMI) showing bull’s green line prevailed at the time of writing.
Therefore, ATOM could target the immediate supply zone at $13,000 in the coming days, giving a potential gain of 15%.
How many are 1,10,100 Atoms worth today?
However, a break below the USD 11,552 – USD 11,072 support range would invalidate the bullish bias described above. The dynamic 100-day EMA (exponential moving average) could keep such a move in check.
ATOM’s OI momentum slowed and sentiment improved
Source: Coinglass
According to Coinglass, ATOM’s open interest (OI) has fallen since January 13. In fact, between January 13 and January 15, there was an OI/price difference, followed by the price drop of ATOM.
At the time of writing, the OI decline momentum was reduced, as evidenced by the smooth, shallow slope. While not entirely indicative of a trend reversal, rising prices can increase OI, boosting uptrend momentum.
In addition, Santiment showed that ATOM’s negative weighted sentiment decreased as it moved closer to the neutral line, indicating that investor prospects were improving. Further improvement in sentiment could positively impact the price.
Source: Sentiment
However, development activity has remained relatively unchanged since January 10 and could undermine the bullish momentum.
But if BTC regains the $21K region, the ATOM’s bulls could be tipped to target or surpass the supply zone at $13,000. However, a bearish BTC could force bears to break below the $11,552 – $11,072 range support.
This post Cosmos [ATOM]: Additional profits are likely if this support holds
was published first on https://ambcrypto.com/cosmos-atom-extra-gains-could-be-likely-if-this-support-holds/
