- Amsterdam based trader and analyst Michael van de Poppe calls for ATOM/USD to rise to $21-23
- The pair has been trading within an Ascending Channel formation since July 20
- ATOM needs to falls to the Channel bottom before the next leg up
JAIPUR (Coinchapter.com) – Interoperability blockchain Cosmos’ native asset ATOM resumed its uptrend on Thursday. The ATOM/USD pair inched up nearly 10% to an intraday high of $15 just in the last 24 hours itself. The pair’s latest upside move came after a 12% dip from the recent local top of $15.46 recorded on Wednesday.
Even with intermittent profit-taking ATOM’s uptrend remained strong. But according to Amsterdam-based trader Michael van de Poppe, the Cosmos underpinning token can head up much higher towards $23.
However, ATOM’s way up is laced with possible corrections. Poppe forecasted the ATOM/USD pair to revisit sub-$14 support levels if a market-wide correction takes shape.
In the chart above, the technical analyst predicted almost a month-long bearish trend for Cosmos’ token prices. Then, ATOM would shoot up and, after a few more corrections, shoot up again to $23 (read the $21-23 range).
ATOM Technical Setup
ATOM’s price action perfectly held on to a trend bounded by an Ascending Channel pattern since July 20. In addition, the ATOM/USD pair tested the Channel’s upper and lower trendlines on multiple occasions. As per the latest scenario, the pair looks primed to tap the Channel’s upper trendline at $15.67 yet again.
The upside move would cause the cryptocurrency to add almost 5% gains to currently trading prices. A flurry of technical indicators point to the said scenario. Relative strength index (RSI) ticked up after rebounding off the multi-week support near 45. With the current reading at 59.11, RSI has “ways to go” before projecting overbought vibes.
The MACD indicator just concluded its bearish cycle and is about to flip green with a bullish crossover. MACD turns green when the blue wave crosses over the red wave. And in turn, indicates a gain-filled session. Plus, buyers supported ATOM’s momentum in the latest rally in the previous trading session.
However, after the rally, and the retest of the Ascending Channel’s upper trendline, ATOM/USD spot rates risk dropping to the lower trendline near $14. In tandem with a wider cryptocurrency market correction, of course. If it happens, at this point, van de Poppe’s discussed scenario for the asset could play out, indicating long-term investors to adopt a wait and see approach to turn profits over the long haul.