ATOM - COSMOS is Bottom Out - (Buying Opportunity)
The Back Ground and Support Zone
ATOM makes a massive move in 2021 when it moves from 9.98 to 44.80. It was a strong bullish rally that held its ground and only saw a minor correction. But it's very next attempt failed to break the ATH, and then it went for a deep correction, and the second attempt to break the ATH also failed. Now it corrects 42%. Recently its rejected from a well-established strong support zone, which is also a 50% retracement of its 2021 bullish rally. Current technicals are in favor of bulls.
Point:
Pay Attention
The trend line and support zone provide a ground that will keep the price above, and from this point, we will see a start of the next bullish leg. Pay attention to support and trend line, MACD is still bottoming and may take the time that indicates it may make another move where it can touch to the 26 once again. That will be an excellent opportunity to enter into a bullish trade. On the other side, if today's candle closes above the last day candle close, it will be a good signal for immediate entry.
Risk / Reward and Holding Period
The only risk is BTC visit to $30K; If it happens, it might visit the $21 area. I suggest planning DCA at $21 if it visits this level. The downside risk is very limited, and I suggest holding it for the next two quarters. The TP one is ATH, and TP2/2022 target is $75.
It is not financial advice; always do your research.
Please, feel free to ask your question; write it in the comments below, and I will answer.
ATOM makes a massive move in 2021 when it moves from 9.98 to 44.80. It was a strong bullish rally that held its ground and only saw a minor correction. But it's very next attempt failed to break the ATH, and then it went for a deep correction, and the second attempt to break the ATH also failed. Now it corrects 42%. Recently its rejected from a well-established strong support zone, which is also a 50% retracement of its 2021 bullish rally. Current technicals are in favor of bulls.
Point:
- Price is trading above the strong support zone.
- Trading above the trend line which is tested twice.
- We witness a decent rejection from the downside.
- An uptick in the volume.
- RSI is above 30 and recovering towards 50.
- Price already correct move than 42%.
Pay Attention
The trend line and support zone provide a ground that will keep the price above, and from this point, we will see a start of the next bullish leg. Pay attention to support and trend line, MACD is still bottoming and may take the time that indicates it may make another move where it can touch to the 26 once again. That will be an excellent opportunity to enter into a bullish trade. On the other side, if today's candle closes above the last day candle close, it will be a good signal for immediate entry.
Risk / Reward and Holding Period
The only risk is BTC visit to $30K; If it happens, it might visit the $21 area. I suggest planning DCA at $21 if it visits this level. The downside risk is very limited, and I suggest holding it for the next two quarters. The TP one is ATH, and TP2/2022 target is $75.
It is not financial advice; always do your research.
Please, feel free to ask your question; write it in the comments below, and I will answer.