Key Insights:
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After a prolonged negative run that sent the price of Cosmos (ATOM) down to a 24-hour low of $11.21, the bears’ impact has weakened in the market. As a result of the bulls taking control of the ATOM market recently, the price rose to a 7-day high of $11.58 before hitting resistance.
At the time of writing, the optimistic mood had persisted, pushing the price up by 1.52% to $11.51 from the previous day’s close. If the positive momentum continues and the resistance level is breached, the price might face additional resistance at $11.80 and $12.00 and support at $11.20 and $11.00.
During the turnaround, the market cap increased by 1.52% to $3,294,460,027, while 24-hour volume decreased by 9.29% to $142,650,347. This change indicates that investors are still bullish on ATOM’s growth prospects, despite temporary hesitance due to decreased trading volume.
ATOMUSD Technical Analysis
The Bull Bear Power (BBP) on the ATOMUSD 4-hour price chart is going north with a score of 0.3120187. This movement indicates that buying pressure is now higher than selling pressure, suggesting a possible positive trend in the near term.
The Money Flow Index (MFI) is now at 67.28, indicating that buying and selling pressures are roughly balanced, with a modest bias toward buying. This level indicates that there is still an opportunity for the price to rise before hitting overbought levels.
In contrast, if the MFI surpasses 80, it may indicate an overbought market, and traders should be cautious about entering long positions since a correction may be on the way.
The stochastic RSI reading of 90.94% and movement below its signal line suggest that the upward momentum in ATOM is fading and that a trend reversal is probable.
As a result of this trend, traders should carefully watch future price movements and consider taking gains or putting up stop-loss orders to mitigate risk.
The Elder Force Index (EFI) rating of 526 suggests that the market is under significant purchasing pressure, which may lead the price to continue rising. Despite contradictory indications from the stochastic RSI, traders can consider maintaining or even increasing to their holdings if the EFI continues high and supports the positive trend.
In conclusion, ATOM bulls charge ahead as bears retreat, with indicators pointing to positive momentum and potential buying opportunities for cautious long positions.
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