Merchants say ATOM may finally do an AVAX-like surge to $100

Cosmos (ATOM) has the potential to report main positive factors within the upcoming weeks primarily as a result of its longer-timeframe chart is displaying a bullish continuation sample. 

Dubbed “bull flag,” the construction seems because the asset developments decrease whereas bouncing between two downward sloping trendlines. Nevertheless, it will definitely breaks out of the vary, within the path of its earlier pattern, with a revenue goal at size equal to the dimensions of its earlier uptrend which is also referred to as the flagpole.

ATOM/USD weekly value chart that includes Bull Flag setup. Supply: TradingView

Due to this fact, in a “good” world, if ATOM is to interrupt above the flag’s higher trendline (with an increase in buying and selling quantity), it could rise by as a lot because the flagpole’s top round $35. This units a value goal close to $65 as when measured from the present potential breakout level.

Practically 64% of ATOM’s whole provide is staked

The bullish setup in ATOM appeared as the token rose over 330% from its June low at $7.82 to this weeks swing excessive close to close to $32.

Circulating token shortage could possibly be taking part in a job in driving patrons into the market. Knowledge fetched by Messari confirmed that just about 64% of the present ATOM provide is staked.

ATOM staking information. Supply: Messari

In keeping with information, Cosmos buyers have staked over 180 million ATOM tokens to grow to be validators on its ‘Cosmos Hub,’ a proof-of-stake blockchain that constitutes one in all many hubs on the community. In return, customers obtain a portion of the community transaction charges and block rewards.

Pentoshi, an impartial market analyst, noted that the rising variety of staked ATOM tokens have been instrumental in pushing its value upward.

The pseudonymous Twitterati added that ATOM sellers have been shedding momentum, citing two corrections in the course of the fourth quarter that obtained stopped halfway on account of the next shopping for stress close to the token’s earlier all-time excessive ranges.

ATOM/USD day by day value chart by Pentoshi. Supply: TradingView

In keeping with the analyst, ATOM is seeing clear:

“Indicators of absorption”

Associated: Worth evaluation 12/1: BTC, ETH, BNB, SOL, ADA, XRP, DOT, DOGE, AVAX, SHIB

Avalanche fractal highlights ATOM’s potential

One other analyst, recognized by the pseudonym ‘Bluntz,’ anticipated that ATOM would proceed its rally upward based mostly on comparable positive factors posted by one in all its prime blockchain rivals, Avalanche (AVAX), earlier this yr.

Like Pentoshi, Bluntz views ATOM’s likelihood of revisiting its earlier record-high as a base to proceed its bull run. In an analogous setup, AVAX rallied by practically 250% after discovering a strong footing contained in the $50 to $60 assist space.

ATOM/USD vs AVAX/USD day by day value chart by Bluntz. Supply: TradingView

In keeping with Bluntz, ATOM may simply hit $100 within the medium-term.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Each funding and buying and selling transfer includes threat, you must conduct your individual analysis when making a choice.