Cosmos (ATOM) is likely to post massive gains in the coming weeks, largely as its longer-term chart shows a bullish continuation pattern.
This pattern is known as the “bull flag” and occurs when an asset is trending downward while jumping between two downward sloping trend lines. However, it eventually breaks out of range and moves in the direction of the previous trend with a profit target equal to the size of the previous uptrend, also known as the flagpole.
Weekly ATOM / USD price chart raising a bull flag | Source: TradingView
So if ATOM breaks above the flag’s top trend line in an “ideal” environment (with trading volume increasing), it can rise to about the same level as the flagpole, around $ 35. This sets a price target close to USD 65, measured at the current potential breakout point.
Almost 64% of the total supply from ATOM has been staked
ATOM’s bullish lineup comes as it has rebounded more than 330% from its lows of $ 7.82 in June by this week and is hovering near $ 32.
The scarcity of ATOMs in circulation could play a role in attracting buyers to enter the market. Data from Messari shows that almost 64% of the current ATOM supply is staked out.
ATOM staking data | Source: Messari
According to Messari, investors sold over 180 million ATOMs to become validators for the “Cosmos Hub”, a proof-of-stake (PoS) blockchain that forms one of many hubs in the network. In return, users receive a share of the network transaction fees and block rewards.
Pentoshi, an Independent Market Analyst, Note that the increasing number of ATOM stakes is responsible for the price increase.
Another analyst, Twitterati, added that ATOM sellers had eased the pressure, citing two fourth-quarter corrections that were halted in the midst of buying pressures near the previous all-time high (ATH).
Pentoshi daily frame ATOM / USD price chart | Source: TradingView
According to the analyst, ATOM sees clear “signs of absorption”.
Avalanche fractal highlights the potential of ATOM
Analyst ‘Bluntz’ has suspect that ATOM will continue its bullish rally based on similar profits from one of its biggest blockchain rivals, Avalanche (AVAX), earlier this year.
Like Pentoshi, Bluntz sees ATOM’s chance to hit previous record highs as the foundation for a continuation of the bull cycle. In a similar setup, AVAX rebounded nearly 250% after gaining a firm foothold within the $ 50-60 support range.
Bluntz Daily Frame ATOM / USD vs AVAX / USD price chart | Source: TradingView
According to Bluntz, ATOM could easily reach $ 100 in the medium term.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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ATOM could rally to $ 100, much like AVAX
Cosmos (ATOM) is likely to post massive gains in the coming weeks, largely as its longer-term chart shows a bullish continuation pattern.
This pattern is known as the “bull flag” and occurs when an asset is trending downward while jumping between two downward sloping trend lines. However, it eventually breaks out of range and moves in the direction of the previous trend with a profit target equal to the size of the previous uptrend, also known as the flagpole.
Weekly ATOM / USD price chart raising a bull flag | Source: TradingView
So if ATOM breaks above the flag’s top trend line in an “ideal” environment (with trading volume increasing), it can rise to about the same level as the flagpole, around $ 35. This sets a price target close to USD 65, measured at the current potential breakout point.
Almost 64% of the total supply from ATOM has been staked
ATOM’s bullish lineup comes as it has rebounded more than 330% from its lows of $ 7.82 in June by this week and is hovering near $ 32.
The scarcity of ATOMs in circulation could play a role in attracting buyers to enter the market. Data from Messari shows that almost 64% of the current ATOM supply is staked out.
ATOM staking data | Source: Messari
According to Messari, investors sold over 180 million ATOMs to become validators for the “Cosmos Hub”, a proof-of-stake (PoS) blockchain that forms one of many hubs in the network. In return, users receive a share of the network transaction fees and block rewards.
Pentoshi, an Independent Market Analyst, Note that the increasing number of ATOM stakes is responsible for the price increase.
Another analyst, Twitterati, added that ATOM sellers had eased the pressure, citing two fourth-quarter corrections that were halted in the midst of buying pressures near the previous all-time high (ATH).
Pentoshi daily frame ATOM / USD price chart | Source: TradingView
According to the analyst, ATOM sees clear “signs of absorption”.
Avalanche fractal highlights the potential of ATOM
Analyst ‘Bluntz’ has suspect that ATOM will continue its bullish rally based on similar profits from one of its biggest blockchain rivals, Avalanche (AVAX), earlier this year.
Like Pentoshi, Bluntz sees ATOM’s chance to hit previous record highs as the foundation for a continuation of the bull cycle. In a similar setup, AVAX rebounded nearly 250% after gaining a firm foothold within the $ 50-60 support range.
Bluntz Daily Frame ATOM / USD vs AVAX / USD price chart | Source: TradingView
According to Bluntz, ATOM could easily reach $ 100 in the medium term.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page
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