Cosmos (ATOM) – Buying mode persists in the short termPosted on Wednesday, January 11 2023 at 8:47 pm GMT+0000
Cosmos (ATOM) has been creeping higher over the last few sessions, and bulls are now pushing efforts to stretch the short-term positive structure beyond the January 9th high.
Technically, the rising 20- and 55-period exponential moving averages are promoting further bullish price action. However, momentum oscillators are at the moment reflecting a dwindling in positive forces as the RSI is zig-zagging out of its overbought area and the KST, despite remaining well above zero, lost some steam and is now flirting with its signal line. Noteworthy, those have not yet confirmed negative pressures as the frontrunners.
For the ascent to get more legs, the buyers will need to generate sufficient traction to revisit the recent top of 11.52, reached on Monday. By clearing this ceiling, they will confidently march towards the 161.8% Fibonacci extension level of the last down leg at 11.93. Next, they will aim for the 261.8% Fibonacci extension at 12.60.
Alternatively, if the ebbing in positive drive escalades and the price drops below the 20- period exponential moving average, it will seek shelter near at the most recent bottom of 10.85. Further lower, the 10.46 inside swing top recorded on the 4th of January, fortified by the nearby 55- period exponential moving average, will step under the radar ahead of the 6th of January bottom of 9.90.
To conclude, Cosmo’s buying mode persists in the short term despite the recent minor price depreciation, and bulls are not easily expected to lose their interest in the market. A significant move above 11.52 is expected to release fresh buying, while a drop below 10.85 will bolster bearish concerns.