TradeCityPro | ATOM : Momentum Shifts and Key Resistance Levels
2024-11-29

👋 Welcome toTradeCity Pro! 
In this analysis, I will review the ATOM chart. Cosmos is a DeFi project on the Osmosis network and one of its main platforms.

 ⏳ Weekly Timeframe: Buying Volume Enters the Market 
In the weekly timeframe, following multiple declines and significant bearish momentum, the price reached the support level at 3.789, where buying volume entered the market, resulting in a notable price recovery. The market's momentum in the low wave cycle is bullish, and no signs of weakness are observed in this timeframe.

🔼 After the price returned above the 6.552 level, the next resistance is at 8.799, which, so far, has acted as a barrier to further upward movement in the current weekly candle. If this resistance is broken, the next significant level is 15.492, a robust area that will be challenging for the price to surpass.

✨ If the RSI oscillator enter the overbought zone, it may introduce more bullish momentum and market FOMO, potentially driving a price pump.



 ⏳ Daily Timeframe: Beginning of a Correction? 
On the daily timeframe, after substantial buying volume pushed the price to the resistance at 8.779, the volume has started to decline, and momentum has slightly weakened. However, further upward movement remains possible.

⚡️ The RSI oscillator found support near the 70 level and is re-entering the overbought zone. Simultaneously, the price is retesting the 8.799 resistance, and with renewed bullish momentum, this level might be broken.

🧩 On the other hand, the SMA99 has distanced significantly from the price, and given the price's tendency to revert to the mean, a correction is plausible. If buying volume fails to re-enter the market, the likelihood of a correction increases.

🔽 In case of a correction, the first support level is 6.552. If the 8.799 resistance is broken, the next targets will be 14.37 and 16.767.

 📝 Final Thoughts

This analysis reflects our opinions and is not financial advice. 

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