Cosmos (ATOM) – Ongoing bullish wave is expected to persist in the forthcoming sessionsPosted on Wednesday, August 24 2022 at 9:00 pm GMT+0000
Cosmos (ATOM) skyrocketed more than 23% to a fresh 3-month high, after forming a foothold near the 10.00 mark and decisively overstepped the August 13th top.
The move underpinned the medium-term bullish structure, which is sponsored by the positively aligned 20- and 50-day exponential moving averages, paving the way for further advances in the coming sessions.
Furthermore, the oscillators are confirming that positive momentum is ramping up. Both the RSI and the momentum indicator have further grown in the bullish area, with the former edging above its previous highs and the latter speeding up towards its mid-August peak. Notably, both are still below their overbought levels, suggesting that the bullish cycle has more fuel in the tank. Additionally, the TSI is ready to cross back above its signal line in the positive region suggesting more bullish actions to come.
So, the first destination for the bulls is currently the 161.8% Fibonacci extension level of the last corrective wave at 13.93. But those won’t likely stop here, instead they are expected to push efforts to stretch the rally towards the 261.8% Fibonacci level at 16.38.
Otherwise, should upside pressures start to wane and the price slips back under the August 13th high the exponential moving averages will attempt to catch the fall and delay a test of the most recent low of 9.97 posted on August 20th. A decisive breach of that barricade, will likely downgrade the medium-term outlook sending the price through the July 26th low of 8.59 and towards the following low of 7.41 posted on July 13th.
Summarizing, the ongoing bullish wave is expected to persist in the forthcoming sessions, with traders currently looking at the 13.93 barrier as their first target.