ATOM Rises To Multi-Week High, Daily RSI Shows Bullish Pattern
Cosmos (ATOM) was trading higher on Tuesday, as prices earlier in the day reached a multi-week high.
The ATOM/USD pair reached its highest level since June 10 on Wednesday, as prices fell below the $10 threshold.
Following the Fourth of July celebrations, during which prices dipped to $8.14, ATOM reached an intraday high of $9.27.
The price of ATOM has increased significantly over the past several weeks with the revelation that, by September, Cosmos projects would be able to attain the highest level of security in the ecosystem.
Cosmos enables developers to design app-specific blockchains that are easily interoperable.
Cosmos (ATOM) Rising, Up 30% This Month
ATOM has experienced significant expansion. Since the beginning of July, the token’s value has increased by more than 30 percent, and by 42 percent since the announcement of its anticipated incorporation into THORChain.
This year’s news of Cosmos’ switch to the Interchain Security protocol, which considerably improves the security of Cosmos Hub and the performance of the entire ecosystem, contributed to the clear acceleration of ATOM’s price.
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ATOM has been trending upwards since the middle of June, and on June 30 produced its first higher low. It is currently breaking through a short-term resistance band.
The daily chart is more bullish than bearish. This is because the relative strength index rating is hugely positive. The RSI was greater than 50, indicating bullish momentum during the preceding few weeks.
After producing bullish divergence, the RSI climbed above its oversold level and successfully closed a swing bottom, a further positive development.
ATOM total market cap at $2.63 billion on the daily chart | Source: TradingView.com
ATOM Set To Breach $10 Level
Following recent increases, ATOM may be poised to once again surpass $10 as bullish pressure builds. Although recent trend has been on the rise, after Tuesday’s peak, gains slowed and some investors chose to leave rather than pursue more gains.
This concern arose when prices reached a point of resistance at $9.10, which has not been breached for roughly four weeks.
The price charts are favorable for bullish market participants. The RSI supported their positive outlook, as it was far over 50 and exhibited an uptrend during the last seven days.
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Meanwhile, bullish ATOM price forecasts are unlikely to be realized so long as the Bitcoin price remains in a decline.
As soon as the BTC price stabilizes, cryptocurrencies may experience a relief rally. Nonetheless, if Bitcoin falls to new lows, the situation for altcoins such as ATOM could become dire.
Featured image from Freepik, chart from TradingView.com