Cosmos Is Stuck in a No-Trade Zone

Key Takeaways

  • ATOM’s worth motion is getting squeezed inside a good vary.
  • There aren’t any clear indicators in regards to the path of the token’s pattern. 
  • A decisive shut outdoors the $26 to $31 vary ought to resolve Cosmos’ ambiguity. 

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Cosmos’ ATOM token continues to consolidate with out offering any clear indicators of the place it should head subsequent. 

Cosmos Stays Stagnant

Cosmos could have generated a major quantity of hype this 12 months, however ATOM remains to be buying and selling sideways.

The native token for the so-called “Web of Blockchains” has seen its worth endure a squeeze after a chronic stagnation interval, signaling {that a} spike in volatility is underway. 

Cosmos has been touted as some of the promising ecosystems throughout the crypto group in latest months, with rising curiosity in initiatives like JUNO and Osmosis. Nonetheless, because the starting of the 12 months, ATOM has been caught inside a $5 worth vary. From a technical perspective, it seems that the 100-day shifting common at $26 on the three-day chart has been appearing as help, whereas the 50-day shifting common at $31 serves as resistance. 

So long as the token continues buying and selling in between each ranges, ATOM seems caught in a no-trade zone. Nonetheless, a decisive three-day candlestick shut outdoors the 100-day and 50-day shifting common ought to decide the place its worth will head subsequent. 

Supply: TradingView

Zooming out on the three-day chart reveals that ATOM’s governing sample is a parallel channel that developed in early September 2021. This technical formation supplies potential targets for the place ATOM might commerce after breaking out of the no-trade zone. 

A bullish impulse that sends Cosmos above $31 might have the energy to see it rise in the direction of the channel’s higher trendline at $44. But when promote orders improve and the $26 stage is misplaced as help, it might dive to the channel’s decrease boundary at $21. 

Given the anomaly that ATOM at the moment presents, it’s seemingly that many merchants will stay on the sidelines, ready for affirmation earlier than coming into any lengthy or quick positions. 

Disclosure: On the time of writing, the writer of this piece owned BTC and ETH.

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