On this first Monday AT of December, our weekly Monday meeting to start the week with technical analysis of a cryptocurrency, we will focus on the ATOM cryptocurrency in the Cosmos ecosystem. In our ATOM latest analysis that started back last August, we noticed that this is an asset that, compared to other altcoins, manages to hold well. Is this observation still valid? Without further ado, let’s go to TradingView to study the evolution of the asset in recent weeks and the bias that should be considered for the end of 2022 and, if possible, the beginning of 2023.
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An ATOM rebound confirmed by the weekly pivot?
First, we will use the weekly time unit to step back from the evolution of the asset in recent weeks. ATOM flourished under the resistance of $15.79 where he was rejected twice. However, during the first strong test in September, the asset made a nice wick that confirmed the target of the previous analysis of the environment. $17.20.
Also, in addition to the double rejection of $15.79, ATOM did not beat EMA32. Each time, the asset closes below this dynamic resistance, indicating a lack of strength among buyers. In recent weeks, the native crypto ofCOSMOS ecosystem bounced off a weekly pivot depicted in blue located at $8.60/$8.90. Once resistance then support during the year 2021, this is a technical level that will not disappear where buyers will have the opportunity to show themselves.
Now acting as a rebound, ATOM carries the direction of $11.57, a technical level where the asset has had the opportunity to respond on several occasions since the beginning of August. Along with the EMA13, this is the first level to retrace for those who want to see the asset at a higher price level. On the contrary, if ATOM is brought to the loss of its pivot zone, the next level where there is a price reaction is located at $6.47 and, in the event of a breakout in a very negative context, ATOM can return to weekly support $4.5/$4.8.
The asset continues to move below resistance
Now, through the daily scale, we have a more accurate view of the oscillations of the last few weeks. What we notice first isevolution of ATOM under a resistance contained in the $10.55 and the impossibility of getting it since the second half of November. Moreover, this technical level is compatible with EMA 25 and EMA32. The current goal is simple: to close the top of $10.75 to increase the likelihood of returning to $11.57 which is the first technical level of monitoring.
or ATOM arrives there and operates in a continuation of strong energy, it is necessary to observe two dynamic resistances which are the MA100 on the one hand and the EMA200 on the other hand. However, there is no point in selling the bear’s skin before killing it because ATOM is still under a meeting of resistances. If sellers continue to hold the asset and it registers a lower low than the previous one, bearish momentum will be present, which will likely lead the cryptocurrency to fall and return to its pivot zone.
But it’s about to go up
To conclude this technical analysis, we will come to the direction that ATOM could take in the next few days. By passing the H4 scale, we can specify the levels to be kept known before the daily scale. For the strong scenario, we discussed the need to close the above $10.75. Here we identify the EMA200 H4 that needs to be recovered, especially since it is at the meeting of the high November 15. Thus, a continuation of $10.83 could be a further indication of a strong move ahead. So it is necessary to monitor the reaction of the asset to this technical meeting when it comes to its approach.
As for the bearish scenario, thoughATOM beyond its trio of EMA 13, 25 and 32, there is only one level to watch in H4: the MA100 H4 which is at 9.97 dollars. This is maintained when we track this level on a longer time scale which is the daily unit. If the price is accepted below this potential dynamic support for a few days, it will confirm the bearish scenario for ATOM.
We are at the end of this analysis of the native cryptocurrency of the Cosmo ecosystem. The ATOM token is in a certain position of stability in the sense that, relatively stable, it has been able to maintain its price better than most altcoins on the market. Despite everything, it is clear that ATOM is still below the daily resistance and H4 level. This shows that buyers still have a long way to go and that, although a rebound has been triggered every week, sellers have probably not said their last word and may show up in the next few days. Their goal is to prevent ATOM from overcoming some technical resistance. Thus, since you have in your hands different levels to monitor, it is important to have an appropriate risk management at this end of the year if you want to take an asset position.
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