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ATOM’s break of the key selling resistance at $12.4 could usher a big bullish run-up in the medium to long-term. This came after the altcoin successfully recovered from the sharp drop it experienced from the $14 price level.
A look southward showed the $12.4 resistance level had been a stronghold for sellers in December 2023. However, ATOM buyers broke through it early in March and have repeated the feat again over the past 12 hours.
This compounded the consecutive bullish candles on the daily timeframe with ATOM registering four green closes in a row.
A look at the broader crypto market showed that Bitcoin (BTC) remained above $70k with the no.1 crypto trading at $70.2k, as of the time of writing.
The Cosmos Interchain Network Continues to Expand
On April 2, Cosmos will celebrate three years of inter-blockchain connectivity. Cosmos uses the Inter-Blockchain Communication Protocol (IBC) which is an open-source protocol to handle movement and authentication of data between blockchains.
From just about 20 inter-connected chains in 2021, Cosmos has grown to over 100 interconnected chains with more chains getting onboarded. These interconnected blockchains are powering the interconnected economy of the future.
Buying Pressure Driving Bullish Momentum
The Relative Strength Index (RSI) rose above the 50 mark to signal the growing buy pressure on the daily timeframe. This is critical to ATOM’s next bullish move, as buyers bid strongly on the spot markets.
However, a key hurdle lies ahead of buyers at the $14 price zone where ATOM suffered a double rejection. Despite the selling pressure at that level, buyers will be confident of breaking the resistance on the third attempt.
Intraday traders can enter a buy trade from the current buy levels to the $14, securing half of their position to guard against retracements at that level. A successful break of the $14 price zone would see ATOM hit $17 and possibly $20.
Trade Idea:
Entry: $12.4 (CMP)
Close half position: $14
Close full position: $17-$20
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
