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

Cosmos (ATOM) has the potential to report main positive aspects 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 traits decrease whereas bouncing between two downward sloping trendlines. Nonetheless, it will definitely breaks out of the vary, within the course of its earlier development, with a revenue goal at size equal to the scale of its earlier uptrend which is often known as the flagpole.

Due to this fact, 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 top round $35. This units a value goal close to $65 as when measured from the present potential breakout level.

Practically 64% of ATOM’s complete 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 could possibly be taking part in a task in driving consumers into the market. Knowledge fetched by Messari confirmed that just about 64% of the present ATOM provide is staked.

In keeping with information, Cosmos traders have staked over 180 million ATOM tokens to turn into validators on its ‘Cosmos Hub,’ a proof-of-stake blockchain that constitutes one in every of many hubs on the community. In return, customers obtain a portion of the community transaction charges and block rewards.

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

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

In keeping with the analyst, ATOM is seeing clear:

“Indicators of absorption”

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

Avalanche fractal highlights ATOM’s potential

One other analyst, identified by the pseudonym ‘Bluntz,’ anticipated that ATOM would proceed its rally upward primarily based on related positive aspects posted by one in every of its high blockchain rivals, Avalanche (AVAX), earlier this 12 months.

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

In keeping with Bluntz, ATOM might simply hit $100 within the medium-term.

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