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ATOM Price Analysis: ATOM Projects A Bullish Outlook As Price Action Approaches Breakout

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  • ATOM is currently trading above its 52 week high 
  • Blockchain Firm Figment launches $16 Million investment fund to fund Cosmos Projects

While the rest of the market was bleeding during the previous week, ATOM managed to sustain its price and traded sideways. At press time, ATOM was trading at a high of 4.64% from its 52 week high. On diving deep into the 4-hour chart, ATOM has recently broken out towards the upside from a symmetrical triangle chart pattern.

However, this break out was not accompanied by huge volume. As anticipated, the price action backtested the resistance at $21.81 after breaking out. This move will trigger potential buyers who intend to go long on ATOM. The price action of ATOM is in an uptrend, and the fact that we saw a Doji candlestick at the support level of $17.61 gave the uptrend a fine start.

Source – tradingview

Super Trend indicator flashes buy signal on the 4-hour chart

Source – tradingview

On observing the chart from a more technical perspective, we can spot a definite case of double bullish divergence, which triggered the uptrend. The price of ATOM is hovering above the key EMAs, which are serving as solid bars of support. The 20 EMA has already crossed above the other EMAs, thus entertaining a bullish EMA crossover. 

ATOM is trading below $25.97 (FIB 0.5), which is a major resistance level for this asset. If the price closes above this range in the next two days, we can presume that ATOM is heading towards smashing its ATH. 

The RSI is stable in the equilibrium zone at $53.61, demonstrating a no-trend scenario while it still has room to grow. 

MACD appears to be bullish, confirmed after a bullish crossover leaving the MACD line above the signal line. 

CONCLUSION: The bull run for ATOM has just begun, and the price will soar higher once the 20 EMA heads above all the other EMAs. Most of the technical indicators are in favor of buying this digital asset.

 If the price manages to sustain above the 52 weeks high on a longer time frame, then investors can expect an 85% upswing. 

The fundamentals of ATOM are impressive, which was concluded after a Canada-based blockchain infrastructure provider- Figment, launched a $16 Million Fund to support decentralized protocols and applications, including Cosmos, Terra, and Livepeer. 

SUPPORT : $17.61
RESISTANCE : $21.65 and $28.54

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Author-Malishka

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