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On shorter timeframes, a bullish trend turnaround seemed to be ongoing for coins such as Aave. and Cosmos. On the journey to healing, there were already some major challenges to resolve. EOS has risen over $4 and has entered a supply zone.
AAVE’s bullish scenario is highlighted in cyan. The breakup under the falling triangle (orange) resulted in a quick rebound around $300, with a retest of $360. The 38.2 percent retracement level at $344 has now become critical. For the bullish case to materialise, strong buying pressure in the $340-$350 range is needed.
If AAVE drops the $344 level again, it will almost definitely be pressured to slip down to $300. On the 4-hour map of Chaikin Money Flow, investors were dominant, with nett cash streaming into the industry.
ATOM checked the market area of $16-$16.7 and bounced, turning the $18 level from resistance to assistance. The 20 EMA (white) was crossing over the 50 EMA (yellow), indicating short-term bullish momentum.
At the time of publication, the RSI had risen past neutral 50 and was at 64, confirming ATOM’s upward momentum.
The next rate of resistance for ATOM bulls to conquer are $19.8 and $21.
There were some bullish signs behind EOS, but it was too soon to reach a long place.
And as the market hovered above the $4 retracement level that acted as help, the supply area at $4.3-$4.5 was suddenly overhead for EOS. In the short term, a retest of the $4.04 mark should be used to initiate a scalp long with a goal of $4.3.
The OBV has been trending upward in recent days, and this purchasing pressure will cause the supply zone to be checked. However, a close stop-loss of $3.98 is advised. The Awesome Oscillator was declining, and the fading short-term bullishness could result in a modest drop down to $4.04.
In the longer term, the 50% retracement level at $3.6 has been defended, based on EOS’s broader advance from $2.38 to $5.6. This defence suggested bullish durability, which would be validated in the coming days by shifting the supply zone to one of demand.