ATOM has been in a 105 day uptrend since making a bottom back in June. Last bull run I was hyper bullish on ATOM but I exited super early around $16 and $27 while it went on to crack $40+. To my defense I was piling in around $3, $5 and $8 when no one was really talking about it. This Bear Market ATOM has proved to be a stand out that has flown under the radar.
Looking at the chart there is a lot to take in. Starting with the uptrend channel you can see it encompasses most of the local tops with the exception of an over throw double top with a rejection back to the Demand Zone.
Demand Zone - Tons of Sell pressure
Supply Zone - Tons of Buying Pressure
I recently entered ATOM in the 12.90 range
If ATOM continues to maintain its structure the next logical move up should lead to the $20 dollar range. What we need to watch for is the trend to not reverse or making a lower high. Note the labeled swing low at $11.51 this is where my stop loss will be but there are more critical levels on the higher time frames, they are just lower.
Typically I roll with a tight stop loss because we are in a Bear Market and you can get whacked hard in a matter of seconds. However, for this trade I am going to allow ATOM more room to flex.
Regardless of the 105 day uptrend we did make a lower high on the weekly and a lower low.
If ATOM loses 11.50 the next level is not much further down around $10-10.40 but you will save an extra 10% by not riding the full swing down.
Even though ATOM is bullish we still must protect our selves because zooming out its entirely possible to see a retest or higher low than its $6 bottom. You have to take into account there is a chance we are starting to notice ATOM at the tail end of its run and not 3rd week of a simple correction.
On the off chance ATOM revisits $6 range I will be a buyer for a long term hold. Given its past performance plus 16% APR for Staking on Binance 6$ would pretty much be a win win situation. At 6$ I would not be looking to sell but switch from trading to DCA strategy.
Please read this post 2-3X and spend some time looking at the chart if you are interested in ATOM, there is a lot going on here
ATOM 1W CHART:
Looking at the chart there is a lot to take in. Starting with the uptrend channel you can see it encompasses most of the local tops with the exception of an over throw double top with a rejection back to the Demand Zone.
Demand Zone - Tons of Sell pressure
Supply Zone - Tons of Buying Pressure
I recently entered ATOM in the 12.90 range
If ATOM continues to maintain its structure the next logical move up should lead to the $20 dollar range. What we need to watch for is the trend to not reverse or making a lower high. Note the labeled swing low at $11.51 this is where my stop loss will be but there are more critical levels on the higher time frames, they are just lower.
Typically I roll with a tight stop loss because we are in a Bear Market and you can get whacked hard in a matter of seconds. However, for this trade I am going to allow ATOM more room to flex.
Regardless of the 105 day uptrend we did make a lower high on the weekly and a lower low.
If ATOM loses 11.50 the next level is not much further down around $10-10.40 but you will save an extra 10% by not riding the full swing down.
Even though ATOM is bullish we still must protect our selves because zooming out its entirely possible to see a retest or higher low than its $6 bottom. You have to take into account there is a chance we are starting to notice ATOM at the tail end of its run and not 3rd week of a simple correction.
On the off chance ATOM revisits $6 range I will be a buyer for a long term hold. Given its past performance plus 16% APR for Staking on Binance 6$ would pretty much be a win win situation. At 6$ I would not be looking to sell but switch from trading to DCA strategy.
Please read this post 2-3X and spend some time looking at the chart if you are interested in ATOM, there is a lot going on here
ATOM 1W CHART:
Comment:
Bearish Case for ATOM - this is the longest we have spent under the 9/21EMA as well as the VWAP. Red circles highlight the few candles we held under compared to the most recent correction. Now, it is expected to be a deeper correction given the run up but we still do not want to lose the above mentioned key levels.