Saturday, August 13

Traders Say ATOM Could Eventually Make AVAX-Like Raise To $ 100


Cosmos (ATOM) has the potential to post significant gains in the coming weeks primarily because its longer time frame chart shows a bullish continuation pattern.

Called a “bull flag,” the structure appears when asset trends decline while bouncing between two falling trend lines. However, it does eventually break out of range, in the direction of its previous trend, with a profit target in length equal to the size of its previous uptrend, which is also known as the flagpole.

ATOM / USD weekly price chart with Bull Flag setup. Source: TradingView

Therefore, in a “perfect” world, if ATOM is going to break above the upper trend line of the flag (with an increase in trading volume), it can increase as much as the height of the flagpole around above $ 35. This sets a price target close to $ 65 when measured from the current potential breakout point.

Almost 64% of ATOM’s total supply is at stake

The bullish setup on ATOM appeared as the token rose more than 330% from its June low at $ 7.82 to this week’s high near $ 32.

The shortage of circulating tokens could be playing a role in getting buyers to market. Data obtained by Messari showed that almost 64% of ATOM’s current supply is at stake.

ATOM stakeout data. Source: Messari

According to the data, Cosmos investors have staked more than 180 million ATOM tokens to become validators on its ‘Cosmos Hub’, a proof-of-stake blockchain that constitutes one of the network’s many hubs. In return, users receive a portion of the network’s transaction fees and lock in the rewards.

Pentoshi, Independent Market Analyst, indicated that the increasing number of ATOM tokens wagered has been instrumental in driving their price up.

The pseudonym Twitterati added that ATOM sellers have been losing momentum, citing two corrections during the fourth quarter that were halted midway due to increased buying pressure near the token’s previous all-time highs.

Pentoshi ATOM / USD daily price chart. Source: TradingView

According to the analyst, ATOM sees it clearly:

“Signs of absorption”

Related: 12/1 Price Analysis: BTC, ETH, BNB, SOL, ADA, XRP, DOT, DOGE, AVAX, SHIB

Avalanche fractal highlights ATOM’s potential

Another analyst, known by the pseudonym ‘Bluntz’, anticipated that ATOM would continue its upward rally based on similar gains posted by one of its main blockchain rivals, Avalanche (AVAX), earlier this year.

Like Pentoshi, Bluntz sees the possibility of ATOM revisiting its previous record as a foundation to continue its bull run. In a similar setup, AVAX rallied by almost 250% after finding a solid base within the $ 50- $ 60 support area.

Bluntz ATOM / USD vs AVAX / USD daily price chart. Source: TradingView

According to Bluntz, ATOM could easily reach $ 100 in the medium term.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.