Crypto Watchlist: Upside Breakout on Cosmos (ATOM)?

Christmas got here early for Cosmos (ATOM) bulls final month ultimately resulting in a textbook trendline break to begin the brand new 12 months. Is that this a return to the longer-term uptrend or a fakeout within the making?

ATOM/USD Each day

ATOM/USD Daily Crypto Chart
ATOM/USD Each day Crypto Chart

Cosmos (ATOM) had fallen laborious in latest months after double topping on the every day chart above just below the $45 deal with, falling over -50% again to the $20 space. This space is certainly one of important curiosity, not solely because it was a powerful assist space again in August 2021, but additionally the 200 easy transferring common.

And it seems to be like merchants took that argument and ran with it as ATOM/USD shot up like a rocket over the previous two weeks, going from a low of $20.21 to in the present day’s excessive of $36.91–a surprising 82% achieve!

This transfer broke the falling ‘highs’ sample marked on every day chart above, creating a brand new technical argument that the return to the uptrend could also be confirmed.

Essentially, Cosmos helps a community of apps and blockchains with a total market cap of over $170B, so it’s a giant participant within the crypto space, with expectations of 200 extra blockchains becoming a member of the community in 2022.

That’s a story that’s meme worthy, and with around 59% of ATOM’s supply locked up in stakes, that could possibly be the explanation we’re seeing the present pump and a cause a FOMO could also be within the playing cards in Q1 2022.

For now, we’re bullish on ATOM, however after the latest pop greater and the overbought sign from stochastic, we’ll be searching for a pullback and reversal candles earlier than contemplating a possible place.

The damaged fallen trendline traces up with the earlier space of sturdy curiosity between $30 – $32, so we’ll be setting our alerts there to test again on the pair and see if ATOM remains to be price staying bullish on.

However what do you all suppose? Is there a pullback within the playing cards for ATOM? Let me know within the feedback part beneath!

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