ATOM recovers in the middle of a market storm, what’s next?

Cosmos (ATOM) is in the process of reclaiming the $ 29.60 support area. That would be a very optimistic development and could lead to a new all-time high.

Day outlook

ATOM has fallen since hitting an all-time high on September 20th. This resulted in a low of $ 24.67 on November 28th.

On November 14, the token appeared to have broken below the $ 29.60 zone. The place has previously acted as a resistance and is expected to provide support.

However, after ATOM created a double floor, it started an upward trend and recaptured this zone.

In addition, the technical indicators are optimistic for the daily timeframe. An uptrend is initiated by a bullish divergence in the RSI (green line), which is a sign that often heralds an upside reversal.

Additionally, the RSI has risen above 50. The last time this was on July 27th, just before the start of an uptrend that led to an all-time high. Hence, there is likely to be a similar move in the near future.

Daily ATOM / USDT price chart | Source: TradingView

Short term volatility

Trader @PostyXBT tweeted an ATOM chart and said that a breakout of the range’s resistance at $ 35 was required for the trend to be considered bullish.

The source: Twitter

The shorter-term six-hour chart shows that ATOM is trading within a descending parallel channel. This has been the case since it hit the aforementioned all-time high on September 20th.

Such channels often contain corrective movements, which means that a breakout via this channel is expected.

In addition, much like the daily time frame, the six-hour RSI has also created a bullish divergence, a sign of a trend reversal.

A retracement of the channel’s centerline is a strong bullish sign that price will break across the channel and move towards a new ATH.

ATOM / USDT 6 hour chart | Source: TradingView

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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.

SN_Nour

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