Since hitting a high of $17.20 on September 9, ATOM price has declined below a descending resistance line. $8.43 on December 16. Later an upward movement started which intensified in the last 24 hours.
During the decline, the most important horizontal zone has been at $10. While ATOM price deviates up and down at times, it respects the area as resistance or support most of the time. The area is also the 0.618 Fibonacci retracement support level when measuring the overall rise.
Since the price of Cosmos has reached the bottom zone, whether it breaks out or gets rejected could determine whether ATOM price analysis is bullish or bearish.
If there is a breakout, Cosmos price could rise towards the average price of $12.80, reaching the descending resistance. This would amount to an upside move of 35% from the current price. On the other hand, a rejection could lead to a decrease to $7.35.
ATOM Price Prediction for January – Will the rise continue?
A closer look at the technical analysis from the daily time frame gives a bullish ATOM price prediction for January. There are two major reasons for that:
- the Daily RSI gone over 50
- ATOM price broke above the short-term descending resistance line
The RSI movement is significant because the indicator has been trading below 50 since November 8, at the same time a short-term resistance line was formed. Consequently, the fact that the rise above the RSI 50 coincided with the breakout of the resistance line further enhances its validity.
Therefore, if Cosmos price manages to move above the $10 resistance area, an upside move towards the descending resistance line at $12.80 would be expected.
To conclude, the most likely ATOM price analysis is an upward movement towards a long-term descending resistance line at $12.80. However, this Cosmos price prediction only holds true if the price manages to reach a daily close above $10. Failure to do so could result in a drop to $7.35.
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