Journalist
Posted:
- ATOM maintained its bullish bias despite short-term price volatility.
- A move towards $12.6 in the coming hours was likely, but it was unclear whether the bulls would be able to break the HTF resistance.
Cosmos [ATOM] recovered by just over 17% between December 12 and 18. After revising the support level at $10.3, ATOM prices recovered quickly. This indicated a buyer-controlled market.
A recent AMBCrypto report highlighted that Cosmos network activity has fallen even as prices have climbed higher. This could be a cause for concern among holders.
The $12.5 area was still in bearish hands
Source: ATOM/USDT on TradingView
The one-day chart of ATOM showed that the market structure was bullish. After testing the resistance at $12.41, the 50% retracement level at $10.3 was revisited. Afterwards, ATOM prices continued to rise.
The bearish order block of $12.4-$12.95 was a major obstacle for ATOM bulls in December. The bullish structure meant a rise was likely. The RSI stood at 62 and showed strong upward momentum on the D1 timeframe.
The OBV also trended higher since November. However, there was a lot of volatility when sales volume suddenly increased.
Nevertheless, the formation of higher lows showed that buyers have the upper hand.
A short-term move to $12.6 was likely
Source: Hyblok
The 12 hours before press time saw Bitcoin [BTC] prices bleed from $43.7k to $42.1k. After liquidity gathered just above $42,000, BTC prices looked poised to rise again. This decline also affected ATOM prices.
ATOM fell to $11.75 and the Cumulative Liq Levels Delta dipped into negative territory. AMBCrypto noted that this suggested more participants were willing to go short. However, this development could push ATOM higher to liquidate these late bears.
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The $12.3-$12.65 zone has multiple estimated liquidation levels of $1.5 million or more. To the south, the region of $11.62-$11.7 was a strong support zone. In the short term, ATOM is expected to rise to $12.6.
For swing traders, a move past $12.9 and a retest of the bearish OB would provide a good buying opportunity, targeting $13.4 and $15.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
