Traders say ATOM could eventually do an AVAX-like surge to $100

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Cosmos (ATOM) has the potential to report main positive factors within the upcoming weeks primarily as a result of its longer-timeframe chart is displaying a bullish continuation sample. 

Dubbed “bull flag,” the construction seems because the asset developments decrease whereas bouncing between two downward sloping trendlines. Nonetheless, it will definitely breaks out of the vary, within the course of its earlier pattern, with a revenue goal at size equal to the scale of its earlier uptrend which is also referred to as the flagpole.

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ATOM/USD weekly worth chart that includes Bull Flag setup. Supply: TradingView

Subsequently, in a “excellent” world, if ATOM is to interrupt above the flag’s higher trendline (with an increase in buying and selling quantity), it could rise by as a lot because the flagpole’s peak round $35. This units a worth goal close to $65 as when measured from the present potential breakout level.

Almost 64% of ATOM’s whole provide is staked

The bullish setup in ATOM appeared as the token rose over 330% from its June low at $7.82 to this weeks swing excessive close to close to $32.

Circulating token shortage may very well be taking part in a task in driving patrons into the market. Information fetched by Messari confirmed that just about 64% of the present ATOM provide is staked.

ATOM staking information. Supply: Messari

In response to information, Cosmos buyers have staked over 180 million ATOM tokens to grow to be validators on its ‘Cosmos Hub,’ a proof-of-stake blockchain that constitutes one in all many hubs on the community. In return, customers obtain a portion of the community transaction charges and block rewards.

Pentoshi, an impartial market analyst, noted that the rising variety of staked ATOM tokens have been instrumental in pushing its worth upward.

The pseudonymous Twitterati added that ATOM sellers have been dropping momentum, citing two corrections throughout the fourth quarter that acquired stopped halfway as a consequence of a better shopping for stress close to the token’s earlier all-time excessive ranges.

ATOM/USD every day worth chart by Pentoshi. Supply: TradingView

In response to the analyst, ATOM is seeing clear:

“Indicators of absorption”

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

Avalanche fractal highlights ATOM’s potential

One other analyst, recognized by the pseudonym ‘Bluntz,’ anticipated that ATOM would proceed its rally upward primarily based on comparable positive factors posted by one in all its prime blockchain rivals, Avalanche (AVAX), earlier this 12 months.

Like Pentoshi, Bluntz views ATOM’s likelihood of revisiting its earlier record-high as a base to proceed its bull run. In an identical setup, AVAX rallied by nearly 250% after discovering a stable footing contained in the $50 to $60 help space.

ATOM/USD vs AVAX/USD every day worth chart by Bluntz. Supply: TradingView

In response to Bluntz, ATOM may simply hit $100 within the medium-term.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it is best to conduct your individual analysis when making a call.