Cosmos (ATOM) hits all-time high as bullish run continues

Cosmos has enjoyed a sharp rise with the coin hitting an all time high in the past two days. At the time of this writing, ATOM’s price is $ 8.29, and just hours ago an all-time high of $ 8.55 was reached, which means that so far in August it has already doubled its price.

But where is it headed? To find out, below we carry out a technical analysis of this cryptocurrency.

Cosmos Medium and Long Term Trend (ATOM)

Despite the fact that this crypto had a hard time breaking out of a historic downtrend, yesterday with the reaching of a new high, the picture completely changed. Now, the bulls have the ground totally clear to the upside, as there is no previous level of higher supply that works as a barrier.

The only thing that we can classify as resistance from now on, are the psychological levels that are generally used as places for profit-taking.

For the medium term, the scenario is the same. The strong momentum that Cosmos is developing maintains a solid uptrend on the weekly chart, supported by the moving averages 8 EMA and 18 week SMA.

At the moment, the momentum is building, and there are not too many signs that it could end anytime soon. If a pullback begins, the moving averages named in the previous paragraph are likely to function as dynamic supports.

Technical analysis of the weekly chart Cosmos (ATOM) vs US Dollar (USD). Source: TradingView.com

Short term ATOM trend

In the daily time frame, we observe a clear short-term uptrend, product of increasingly higher lows and highs.

The moving averages 8 EMA and 18-day SMA support this direction and functioned as dynamic supports before the start of the momentum that reached the all-time high.

Today, we see momentum developing, with a daily candle trying to pull back. However, it has not yet closed and, quietly, could return and continue the bullish trend.

There are no bearish signals yet on intra day time frames to confirm that the price is going to make a deep pullback soon.

In conclusion, the odds are on the bullish side. Cosmos’ resistance escape yesterday is just the beginning of a new momentum. For this reason, we may see a new all-time high for ATOM as the hours go by.

We don’t think it’s a good time to enter. The ideal is always to look for the lowest price, when it seeks to collect demand by going backwards.

As there are no upper zones where supply has previously been generated, it is likely that Cosmos will move up to seek the psychological level of $10 before initiating a major pullback.

ATOM vs USD daily chart. Source: TradingView.com