Cosmos ATOM Continues Its Rip Upward
Updated
ATOMUSD - 1HAt the beginning of February Atom completed a cup and handle which marched the price above $15. As noted in the original idea, I'm in this trade long term for staking & DEX activity with no plans on exiting anytime soon. That being said, it's good to know what kind of legs this run has.
ATOM is in price discovery with healthy strides upward. We've got only a couple wicks on the hourly piercing the upper BBand and their rejections weren't too strong. EMA7 is holding strong as support on retractions - so if you're looking for a good entry point buy on a pullback to it. Today's volume spike was half of what two different candles were on Feb 5, so we've got lots of leg room to meet precedent. If things were to fall though, $17 has proven to be strong support.
Everything about this chart and concept screams long. With people fleeing ETH and the run ADA had, don't temper your expectations. The platforms that offer staking incentives, especially those with timelocks like ATOM, are drying up in supply as long term holders continue to stake and not take profits on exchanges. I believe this type of shock is responsible for a part of ADA's run, and it presents an interesting dynamic to technical analysis.
This is not investment advice and trading cryptocurrency is high risk.
Note
Pulled back from OP with a solid bounce off $17Note
Testing $20 as support before punching up again
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