![BitTorrent [New]](https://s2.coinmarketcap.com/static/img/coins/64x64/16086.png)
Proof of this can be found in the recent behavior of the price of Cosmos (ATOM). A buy signal corresponding with the TD Sequential indicator, which is used to spot trend exhaustion and possible reversals, has been triggered on ATOM’s weekly chart. This indicates that the selling pressure might be waning, which could allow for such an upward shift.
Moreover, the ATOM price has also retraced to a level of around 0.618 Fibonacci, a range known to be a reversal point. This pullback, along with the recent bullish movement, shows good support at this level and increases the probability of a bounce.
EMA Crossovers Indicating Increasing Momentum
The EMA crossover that we saw recently has also secured the bullish perspective for the ATOM. Notably, the 9-period EMA has crossed above the 26-period EMA—a technical bullish signal traditionally indicative of increasing upward momentum. Such crossovers historically signal a trend reversal indicated by rising buying pressure.
And this price action, combined with other indicators, strengthens the likelihood of continued upside. However, traders need to consider additional factors before making decisions, such as market sentiment and macroeconomic conditions. While technical signals may hint at the next move, ensuring proper research and risk management is paramount.
Market Sentiment & Liquidation Levels
Liquidation analyses at a macro level can give clues to where prices are headed in the short term. Recent statistics have shown extreme spikes of long liquidations at around the 0.22% and 0.26% levels as these long positions have been liquidated, resulting in temporary selling pressure and price recovery.
The current liquidation level is 417.81, which, however, is still lower than past peaks. This indicates that there is little to no selling pressure from liquidations in the market at this time, making a further drop less likely and making a generally smoother price climb appear more likely.
Bollinger Bands Show Possible Breakout
The Bollinger Bands also confirm the rebound possibility, serving as a key volatility indicator. Currently, ATOM is hovering around the lower Bollinger Band, which usually serves as support. This positioning implies a possible price recovery. Further, the Bollinger Bandwidth indicator is currently oscillating at 0.05, suggesting low volatility. Historically, it has been shown that low volatility is followed by sharp price movements, indicating that a volatility expansion would lead to an upward breakout.
What it Means for ATOM Critics
‘Industry experts have made different predictions. For now, while ATOM is expected to trade from $3.56 to $10.82 according to CoinCodex’s six yellow price filters, the price could also rise by 130.44% at the highest price target. According to Changelly’s analysis, crypto analysts project an ATOM price around $5.90 at the end of summer 2024, with the potential to fall to a minimum of $5.78 in August 2025.
You are under no circumstances qualified for investing advice; these forecasts can change along with market conditions.
ATOM Flashes Bullish Signals, But Is It Time to Buy? Key Indicators and Risks Explained
Most importantly, several technical indicators indicate that ATOM may be due for a bounce. A popular tool used to detect trend reversals, the TD Sequential buy signal, has also flashed bullish, suggesting the sell pressure may be running out of steam. Furthermore, with the recent EMA crossover, upward momentum is increasing, strengthening the probability of an increase in price.
The case was strengthened even more by the retracement of ATOM to the 0.618 Fibonacci level, a critical support area in TA. That said, investors must evaluate wider market circumstances, do careful research, and understand potential risks before taking any financial action.
This article does not constitute financial advice and is for informational purposes only. We’re told you have data until October 2023.
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Frequently Asked Questions
Is this cryptocurrency likely to go up in value?
If the demand is factual, its price may rise, but this ultimately depends on external market influences, investor sentiments, and the macroeconomy.
What does the TD Sequential numerical display indicate?
It serves as an indicator of trend fatigue, indicating that this digital asset could soon see a price retracement or start a new bullish cycle.
What is the Significance of the EMA crossover?
A bullish crossover on the EMA denotes increasing buying pressure on the digital currency and is often viewed as a potential positive price movement for the digital currency.
What are the technical indicators to make investment decisions?
Although technical analysis guides you in spotting trends, remember that risk assessment, market conditions, and thorough research are key before any investment decision.
Glossary of Key Terms
TD Sequential Indicator: A technical analysis tool that helps identify when asset price moves are reaching their trend exhaustion phase and potentially turning towards the opposite path when trading assets and cryptocurrencies.
Fibonacci Retracement: A technical analysis approach to using important levels like 0.618 to find possible support or resistance zones for the prices of assets.
Exponential Moving Average (EMA): A weighted moving average that places more emphasis on recent prices, aiding traders in identifying trends and momentum shifts.
Bollinger Bands: A volatility indicator made up of an upper, middle, and lower band that indicates potential overbought or oversold conditions in an asset.
Liquidation Levels: Price levels at which a trader’s margin is so low that their leveraged positions are automatically liquidated, being an important concept for short-term price action.
Support and Resistance: Support is a level at which buying pressure prevents the price from falling, and resistance is a level where selling pressure prevents it from rising.
Market Sentiment: The predominant attitude of investors towards a security or financial market, a driver of some price movement.
