The ATOM/USDT pair is registering a 13% gain from the USD 25.5 support in the past two days. The coin price bounced with a long bullish candle, which engulfed the last four days of trading activity. Buyers managed to break a bearish trendline, which should start a rally
Main technical points:
ATOM price shows bullish engulfing candle at $26 support
The ATOM Buyers Regain the 200-Day EMA
ATOM coin intraday trading volume is $1.16 billion, indicating a 68.9% increase
Source- Trading Display
In our previous coverage of ATOM price analysis, we summarized the ongoing correction phase, which lowered the coin price by 42.5% from the All-Time High resistance at $44.6. ATOM price fell to shared support from $25.5 horizontal chart level and 0.786 Fibonacci retracement level.
For the past few days, the coin price has hovered above the $25.5 support, looking for sufficient demand. On Feb. 3, buyers bounced the coin with a bullish engulfing candle, suggesting that the bulls are buying this dip.
The Stochastic RSI has seen significant gains over the past three days and is steadily approaching the centerline to confirm the bullish edge.
With the recent price surge, ATOM buyers have reclaimed the 200 EMA line. The coin price maintaining this level indicates that the bullish trend is intact. However, a bearish crossover of the 20 and 100 encouraged the seller to continue with this correction.
ATOM Buyers Escape the Downtrend Line
Source- Trading Display
The 4-hour time frame chart shows ATOM price above the bearish trendline, which has rejected the rallies since Jan. 20. Today, the coin price is showing a small pullback to retest the inverted support trendline.
If the buyer could stay above this trendline, the immediate target would be at $32.5. However, this overhead resistance is the main barrier that the bull has to knock out to confirm a recovery rally.
Resistance Levels- $30 and $32.5
Support Levels-$25.3 and $23.6
Disclaimer
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About the author
I have been working in journalism for the past 5 years. I follow the Blockchain & Cryptocurrency of the past 3 years. I have written on a variety of topics including fashion, beauty, entertainment and finance. contact me at brian (at) coingape.com
This post Cosmos Price Analysis: A $32.5 Breakout Is A Must To Ensure A Bullish Rally
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