In this new Monday AT, to start the week properly, we will focus on the cryptocurrency of the Cosmos ecosystem which, despite the bear market, continues to develop significantly. ATOM has been sideways for several months, is this a sign of buying interest for this asset or is it just a delay before starting a new bearish leg? We will try to answer it today by identifying the key levels on the asset by studying different timeframes.
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ATOM managed to save the weekly closing
Since our previous analysis of ATOM at the end of 2022, the price is trading at higher levels. In addition, the levels mentioned have not changed since we now see a range with a lower limit at $8.60/$8.90 and an upper limit at 15.20/15.70 dollars. Recently, ATOM was rejected on the upper limit, which suggests, from a theoretical point of view, the return of the price to the lower limit.
However, the price is currently holding on the pivot level which is within the range at $11.58. As long as the price does not close below on the weekly scale, we can preserve a buying bias with a return of ATOM on its upper limit in order to register a top higher than the previous one.
However, nothing is decided yet despite the weekly close being saved with a large wick on the previous candle. If the price does not manage to maintain itself on the current level, the way will be opened for a return ofATOM on its lower limit and, in the event of a significant drop, below its low point at the end of 2022 to recover the liquidity that has accumulated below these levels.
The asset is in a key moment on a daily scale
On thedaily scale, the volume profile is used to identify the horizontal levels where the price is most likely to react technically. Thus, the High Volume Nodes (HVN) have been identified in orange so that you can easily view them. It is clear that ATOM is in a key moment where it will have to be able to stay above the pivot of its range while freeing itself from a technical confluence which consists of the 1D MA100 and a HVN at $11.80/$12.
If the price closes above this level, it will be rather positive for the rest of the events since a first objective could be set up at 13 dollars (higher HVN). However, nothing is decided yet since the price is currently under resistance. If ATOM is unable to stay on the pivot and goes back under the $11.58the invalidation will be clear to buyers.
In this context, before returning to the lower limit, two objectives could be envisaged. The first is price action back to early weekend levels on the lower HVN and the second focus is the Point Of Control at $10.15. In such a scenario, if the POC comes to let go, the price will quickly take the direction of the lower limit with a potential rebound on a technical zone at 9.50 dollars.
Here we are at the end of ATOM’s analysis, the weekly situation is rather interesting with the rebound which led the asset to preserve the pivot of its range. However, ATOM is under resistance that should not be overlooked. So, if you want to take a bullish position, it is better to wait for signals that will confirm your bias such as a close above $12 and a price evolution above this level for several days. However, if the buying force of ATOM does not present itself on the price, then the trend started with the rejection on the upper limit of the range will continue to push the asset to lower price levels.
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