ATOMUSD reading the cosmos

It has taken me a long time to get a handle on ATOMs price movement since the last bear cycle started in September. Finally, everything seems more clear. I think yesterday was the local bottom, and $7 will be an inevitability. The path on the chart shows the most optimistic scenario where the price breaks through uptrend resistance in January, consolidates, and then eventually runs toward $10. If it takes too long to get to $7 (after February 2021), then the buck could stop there and after that point it's anyone's guess. In the worst case scenario, it could potentially sink all the way down to the $3 range. If it goes to the cyan box around $3, I will HODL as a long term investment. Let's see what happens.

Note

Touched the bottom of the cyan support zone a few hours ago. It still could technically move a touch lower very briefly, but $4.55 is the core support area. It now has the energy to rocket up to the top of the downtrend resistance near $5.8. On the flip side, if we see a sustained move below $4.5 and a candle close on this timeframe, it could signal more accumulation (sideways) or more downside below the primary uptrend support near $4.3.

Note

Be sure to take some profit around $7. You can always buy back in if it punches through with conviction, but the market is a bit too hot and people will start making rash decisions. If the breakout point is too obvious on the chart (as is the case here), whales and bears tend to psychologically screw with new longs to shake them out or trigger stop losses. These are great active daytrading zones, but you have to be mindful if a real breakout materializes to jump back in when the time is right -- usually on a brief pullback to convert prior resistance into support.

Note

Good time to start reloading here at ~$5.75 if you took profit near $7. No need to FOMO all at once, but start scaling in.

Trade closed: target reached

Wow! Final target from this analysis reached in less than one month. It plowed through $10 without a fight, so I expect higher targets in the coming months. It might pull back here due to psychological resistance, or it could act like BTC and just go vertical without ever returning. It's hard to say in such a strong bull market. Based on chart patterns, it should be able to push up to at least $15 - $17. It could wick higher into the $20 range, but we'll need to see what the data looks like after it crosses above $15 to make that determination.

swilton

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swilton