100 Interactions, 2 Today
Cosmos gained traction on the charts following the flash crash on September 7th. Its price increased by 110 percent in one week after reaching $17. Corrective stages held the rally together, ensuring a more organic climb rather than a sporadic spike.
With ATOM easing away from its ATH, the price is likely to create a higher low and continue its upward trend. The Fibonacci Extension tool can be used to set a few goals for the future.
ATOM was trading at $33.8 at the time of writing, down 3% in the previous 24 hours.
ATOM 4-hour Chart
The upper sloping trendlines emphasised ATOM’s recent course. Higher highs were formed at $27.5, $30.9, and an ATH of $38.9, respectively. Higher lows, on the other hand, were recorded at $24.5 and $27.7. Following the price’s record high, a cooling period allowed ATOM to fall below the 61.8 percent Fibonacci Extension mark.
A higher low created anywhere above the 38.2% Fibonacci line would allow ATOM to continue its uptrend. In this situation, the next goals would be the Fibonacci Extension levels of 100 percent, 138.2 percent, and 161.8 percent.
ATOM must close below its previous swing low of $30.3 to invalidate this forecast. This would also encourage some short-selling, potentially exposing the market to a worse decline.
Despite a few bearish warnings appearing on ATOM’s indicators, they all remained above crucial levels. For example, after descending from overbought levels, the RSI remained over 50. During an uptrend, the RSI often finds support between 50 and 45. Similarly, despite a bearish crossover, the MACD was still trading at a 5-day high.
Meanwhile, the +DI of the Directional Movement Index moved closer to the -DI. And, while an unfavourable crossing was possible, purchasers can be expected to battle back in the next sessions.
Because ATOM appeared to be on the verge of making a new low, traders had the opportunity to purchase the alt at a reduced price. Ideally, buy orders should be placed near the 50% Fibonacci Extension, which served as support. Traders will profit by more than 20% if the price rises over the 100 percent Fibonacci Extension line on the following leg up.