Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion
- Cosmos [ATOM] witnessed a bullish MACD crossover – a purchase sign
- ATOM noticed improved growth exercise and funding charges, however the sentiment continues to be unfavourable
Cosmos [ATOM] rebounded after Bitcoin [BTC] reached $16.19K on 22 November. Notably, BTC’s decline from $16.60K between 27 and 28 November led to the value correction of ATOM.
On the time of writing, ATOM was buying and selling at $10.155, up 4% within the final 24 hours. Following a confirmed bullish Shifting Common Convergence Divergence (MACD) crossover on 25 November, ATOM buyers noticed a shopping for alternative forward of them.
Learn Cosmos’ [ATOM] worth prediction 2023-2024
Nonetheless, ATOM’s market construction was nonetheless bearish at press time. Subsequently, risk-averse merchants might be on the lookout for shopping for alternatives after a breakout and retest of this Fib degree in a day or two.
A bullish MACD crossover: can the bulls maintain the upside momentum?
The bullish MACD crossover might be thought of because the purchase sign that coincided with a creating uptrend. Nonetheless, the plotting of the Fibonacci retracement device between the best and lowest ATOM worth factors in November led to outcomes that weren’t convincing.
ATOM didn’t break above the 23.6% Fib degree ($10.413) – a major resistance. If the bulls break the 23.6% Fib degree and retest this degree or verify it as help, buyers can take positions for a protracted commerce as help at $9.854 might be thought of as secure.
On this case, the goal for a protracted place could be the bearish order block on the 50% Fib degree ($12.289). Key technical indicators level towards this inclination.
The Relative Power Index (RSI) retreated from the decrease ranges bordering the oversold territory. It confirmed that the promoting strain was easing. This additionally meant that the bulls have been slowly gaining affect.
Accordingly, the On-Steadiness Quantity (OBV) reached some new highs since mid-November. It confirmed that buying and selling volumes have been growing, which might enhance shopping for strain and assist the bulls to interrupt via resistance targets.
Nonetheless, an intraday shut beneath $8.736 would invalidate the above inclination. On this case, one other downtrend might discover new help at $7.059 or beneath.
Improved growth exercise, however the sentiment stays unfavourable
In accordance with Santiment’s data, ATOM noticed a gradual enhance in growth exercise from October. Nonetheless, growth exercise fell in mid-November, solely to rise steadily once more thereafter.
Apparently, ATOM’s growth exercise correlated positively with its worth efficiency. Subsequently, the rise in growth exercise on the time of the press launch might point out a possible enhance in ATOM’s worth.
Nonetheless, the weighted sentiment of ATOM remained worryingly unfavourable all through November. Because it additionally immediately impacts the value of ATOM, this might complicate ATOM’s ongoing worth restoration.
Subsequently, risk-averse merchants shouldn’t rush to purchase the bullish MACD crossover. Ready for a break of the 23.6% Fib resistance degree and a retest could be a certain signal to provoke a transfer. Nonetheless, ready for a retest might result in a missed alternative if the uptrend continues with out retesting the extent.
Thus, cautious merchants ought to await a convincing breakout above the 23.6% Fib degree. As well as, it’s best to monitor BTC’s efficiency and sentiment on ATOM.