Cosmos (ATOM) reached a two-month high on Wednesday as the token hit its strongest point since November. Today’s rally came as the 14-day RSI ventured deeper into overbought territory. However, the sentiment could reverse soon as the bears look to come back to break into the market as the RSI is now following levels not seen since last January. The global volume of the asset is up 16% while the price has risen by almost 7% in the last 24 hours.
At the time of writing, ATOM was trading at $11.965
Atom made a ‘Bullish Harami’ candle at the low of $8.43 and started trading in an uptrend by forming a ‘Higher High Higher Low’ pattern. The prices have surged almost by 41% within a month from $8.45 to $11.975. The asset has strong resistance at $12.5 (Horizontal Trendline and 200-Day Moving Average). If Atom breaks and closes above this level then we can expect it to further rally up to $15 levels. If the price resists around $12.5 then we can expect some profit booking. $10.5 will act as a strong support for the asset.
|Support 2||Support 1||Asset||Resistance 1||Resistance 2|