A huge spurt in buying volumes was seen on Sunday as Cosmos (ATOM/USD) was trading over 7% higher. Atom powers an ecosystem of blockchains designed to scale and interoperate with each other. The team aims to "create an Internet of Blockchains, a network of blockchains able to communicate with each other in a decentralized way." Cosmos is a proof-of-stake chain. Atom is only 8% away from hitting a new all-time high, thus it is looking like investors are expecting Atom to hit a new high soon which could be seen in the coming week. Investors are now looking for opportunities to buy Atom before it hits a new high.
Atom is trading over 30% higher this month and it may only be the start of the rally, Atom fell by over 50% in December however a strong rally was seen this year which is about to take Atom to a new all-time high. Over the past few weeks, Atom was trading sideways and it is looking like it was an accumulation phase before Atom starts a rally which will break the all-time high. Thus it is looking like a sharp rally will be seen once again, however, investors must be patient as a fake breakout can be seen too.
Here is what the charts are suggesting-
After a sharp rally in December, Atom was trading sideways and was accumulating thus a sharp rally should be seen after Atom breaks the all-time high.
Investors must be cautious and should only enter once the resistance at $44 is broken, as Atom could get rejected by sellers at the resistance.
Investors should set a stop-loss at $37 as a false breakout can be seen.