Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Cosmos price action showed that bulls had the upper hand over the past month.
- If their battle pays off, ATOM prices could move past the $10.6 level in the coming weeks.
Cosmos [ATOM] bulls managed to defend the $9 support level over the past few days. While the sellers didn’t have much luck pushing prices below $9, the bulls also failed to seize control of the $10.2 resistance.
Read Cosmos’ [ATOM] Price Forecast 2023-24
However, Cosmos could present a buying opportunity for traders with different time horizons based on its reaction to key overhead resistance levels. Bitcoin [BTC] hovered just above $30k, but if it saw a move higher, ATOM would likely follow suit.
ATOM presented two long trades, but it could be difficult to meet the criteria
![Cosmos [ATOM] would yield a scalp and positional long trade if…](https://statics.ambcrypto.com/wp-content/uploads/2023/07/PP-3-ATOM-price.png)
Source: ATOM/USDT on TradingView
Despite being near the lows, Bitcoin did not have a near-term bullish outlook. If BTC posted losses, ATOM would likely follow suit. This was the only bearish argument for ATOM in the near term.
The token has bounced off the trendline support (green) several times, hitting the $10.1 and $10.28 levels in July. This was a sign of bullish intent and any retest of the $10.2 resistance zone would likely weaken the sellers.
The 12-hour chart showed the RSI climbing back above the neutral 50, encouraging buyers. Still, the OBV did not see an upward trend over the past month. There were a few upsides followed by full retracements on the indicator suggesting that buying pressure was not yet strong enough to break resistance.
Therefore, positional traders can buy ATOM if the price crosses the $10.6 mark and retests the $10.2 level. The $10.2-$10.6 region acted as a former support zone from March to June and is likely to be packed with sellers on retest.
Is your wallet green? Check out the Cosmos Profit Calculator
The lower timeframe charts showed a strong bullish conviction
![Cosmos [ATOM] would yield a scalp and positional long trade if…](https://statics.ambcrypto.com/wp-content/uploads/2023/07/PP-3-ATOM-coinalyze.png)
Source: Coin analysis
From July 18, prices started climbing higher on the 1-hour chart, breaking the previous bearish structure a few hours before press time. This was accompanied by a major rally in the Open Interest. OI climbed from $71.6 million to $75.8 million, indicating capital inflows and optimistic sentiment.
Spot CVD has been flat for the past 24 hours, suggesting that buying pressure has not been dominant. Overall, if the bulls can break the $9.6-$9.8 resistance area, a retest could provide a scalping opportunity targeting $10.2. The short-term idea would be invalidated if it falls below the $9.6 level.
