Cosmos (ATOM) may make another attempt at the new ATH
Cosmos (ATOM) is up 13% today and it may soon make a third attempt to break the $44.5 horizontal resistance area.
On September 20th, ATOM made a new all-time high of $44.8 (red symbol) and then started a long correction that also led to a low of $20.18 on December 15th. Since then it has increased.
On Jan 7th and 17th, the price made two attempts to break above the $44.50 area (red icon). However, it failed both times.
Between this point, the price bounced off the $33.3 zone and confirmed it as support (green icon). The price has since risen and is once again approaching the $44.5 zone, which may attempt another breakout.
Will ATOM hit a new all-time high?
Technical indicators for the intraday support the continuation of the uptrend towards new all-time highs. This is particularly evident by the hidden bullish divergence (green line) on the RSI, which is a very strong sign of trend continuation.
The last time such divergence developed (highlighted), an uptrend of 150% magnitude followed, leading to the current ATOM all-time high.
The RSI is also above 50, a level associated with a bullish bias.
Therefore, according to this indicator, a new all-time high is likely.
With the ATOM very close to the all-time high, using the outer Fib retracement level is essential to identify the next levels of resistance.
Using one of the recent (highlighted) declines, the next resistances are found at $51.45 and $59.80. These are the external Fib resistance values of 1.27 and 1.61 respectively.
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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