CNBC host Jim Cramer is advising investors to avoid meme assets and altcoins after the Federal Reserve announced further interest rate hikes. In a new Mad Money segment, Cramer says that investors should steer clear from meme tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB). He also cautions against Ethereum (ETH) scaling solutions such […]
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A popular crypto strategist known for his timely altcoin calls warns that a trio of digital assets could see more pullbacks. Pseudonymous analyst Altcoin Sherpa tells his 181,900 Twitter followers that smart contract platform Solana (SOL) is likely headed to revisit its range low of $25. “I think a run at these $25 lows is […]
The post Crypto Analyst Predicts Corrections for Solana (SOL), Avalanche (AVAX) and Cosmos (ATOM) – Here Are His Targets appeared first on The Daily Hodl.
Flow rose for a second consecutive session on Tuesday, as the token climbed by 12% earlier in the day. The rebound comes after prices fell to a one-month low over the weekend. Cosmos was also in the green, as it, too, hit a five-day high. Overall, the global crypto market cap is up 0.68% as […]
A trading robot that’s earned a reputation for outperforming the markets is revealing its newest portfolio allocations as most cryptocurrencies seek to recover from an overall downtrend. Each week the Real Vision Bot conducts surveys in order to compile algorithmic portfolio assessments that generate a “hive mind” consensus. The bot’s latest data reveals that traders’ […]
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Bitcoin price looks set for more downside, but this could present trade opportunities in MATIC, ATOM, XMR and CHZ.
The United States equities markets plunged on Aug. 26 following Federal Reserve Chair Jerome Powell’s speech where he reiterated the central bank’s hawkish stance. Continuing its correlation with the equities market, Bitcoin (BTC) and the cryptocurrency markets also witnessed a sharp selloff on Aug. 26.
Bitcoin has declined about 14% this month, making it the worst performance for August since 2015 when the price had dropped 18.67%. That may be bad news for investors because September has a dubious record of a 6% average loss since 2013, according to data from CoinGlass.
Although buying in a downtrending market is not a good strategy, traders can keep a close watch on cryptocurrencies that are outperforming the markets because, in case of any turnaround, these are likely to be the first off the block. In a bear market, traders should be patient because they are highly likely to find plenty of opportunities to buy after the market stabilizes.
What are the critical levels to watch on Bitcoin? If it stages a turnaround, what are the cryptocurrencies that may outperform in the short term? Let’s study 5 cryptocurrencies that are looking strong on the charts.
A weak rebound off a strong support indicates that bulls are hesitant to aggressively buy at the level. The bulls successfully defended the support line for several days but could not push the price above the 20-day exponential moving average ($21,806). This shows a lack of demand at higher levels.
Bears pounced upon the opportunity and pulled the price below the ascending channel on Aug. 26. The 20-day EMA is sloping down and the RSI is near the oversold zone, indicating that bears are firmly in the driver’s seat.
The BTC/USDT pair could drop to the strong support zone between $18,910 and $18,626. If the price rebounds off this zone, the bulls will try to push the price above the 50-day simple moving average ($22,340). If they manage to do that, the pair could rise to $25,211.
Conversely, if the price breaks below $18,626, the pair could retest the June 18 intraday low at $17,622. The bears will have to sink the price below this level to signal the resumption of the downtrend.
The downsloping moving averages on the 4-hour chart indicate that bears are in command but the positive divergence on the relative strength index (RSI) suggests that the sell pressure could be reducing.
The first sign of strength will be a rise above the 20-EMA. If that happens, the pair could rise to the 50-SMA. A break above this level could signal that the correction may be over.
On the contrary, if the price breaks below $19,800, the selling could pick up momentum and the pair may plummet to the $18,910 to $18,626 zone.
Polygon (MATIC) has rebounded off its strong support, which shows that bulls are defending the level aggressively. This increases the likelihood of the range-bound action continuing for a few more days. That is one of the reasons for focusing on this altcoin.
The bulls are attempting to push the price above the moving averages. If they can pull it off, it will suggest that the MATIC/USDT pair could attempt a rally to the overhead resistance at $1.05. This level could attract strong selling by the bears.
Alternatively, if the price turns down from the moving averages, it will suggest that bears are selling on rallies. The bears will then attempt to sink the price below the crucial support at $0.75. If they succeed, the pair could decline to $0.63.
The bulls have pushed the price above the moving averages, which is the first indication that the selling pressure may be reducing. Another positive sign is that the RSI has made a positive divergence, a sign that the bears may be losing their grip.
The buyers will try to push the price above the overhead resistance at $0.84. If they succeed, the pair could rally to $0.91 which may again act as a strong resistance. To invalidate this positive view, the bears will have to sink the price below $0.75.
Cosmos (ATOM) has been selected because it is trading above the 50-day SMA ($10.58) and is near the psychological support at $10.
The bulls are expected to defend the zone between $10 and the 50-day SMA aggressively. If the price rebounds off this zone and rises above the 20-day EMA ($11.39), it will indicate that the selling pressure may be reducing.
The ATOM/USDT pair could then rise to the overhead resistance at $12.50 and later to $13.45. A break above this level could suggest that the downtrend may be over.
Contrary to this assumption, if the price turns down and slips below the support zone, it could start a deeper correction. The pair could then decline to $8.50.
The 20-EMA has turned down on the 4-hour chart and the RSI is in the negative territory, indicating that bears have the edge in the near term. The sellers will have to sink and sustain the price below the uptrend line to challenge the psychological support at $10.
Conversely, if the price rebounds off the uptrend line, it will suggest that bulls are buying the dips to this level as they have done on previous occasions. The buyers will have to push the price above the moving averages to open the doors for a possible rally to $12.50.
Related: Bitcoin threatens 20-month low monthly close with BTC price under $20K
Monero (XMR) has made it to the list because it is holding above its immediate support at $142. This suggests that lower levels are attracting buyers.
If bulls drive the price above the 20-day EMA ($153), it will suggest that the correction may be over. The XMR/USDT pair could pick up momentum if bulls drive the price above the overhead resistance at $158. If that happens, the pair could rally to $174. The bulls will have to clear this hurdle to signal the resumption of the up-move.
This positive view could invalidate in the near term if the price turns down and breaks below the strong support at $142. If that happens, the pair could slide to $132 and later to $117. The downsloping 20-day EMA and the RSI in the negative territory indicate that bears have a slight edge.
The buyers are attempting to push the price above the 20-EMA. If they manage to do that, the pair could rise to the 50-SMA, which may again act as a stiff resistance. If bulls overcome this barrier, the pair could rise to $158. A break and close above this resistance will suggest a change in the short-term trend.
Conversely, if the price turns down from the 20-EMA, it will suggest that bears are selling on minor rallies. The pair could then decline to the strong support at $142. If this support cracks, it will suggest the start of a deeper correction.
Chiliz (CHZ) has found a place in this list for the third consecutive week. That is because, even after the recent correction, it remains in an uptrend.
Buyers pushed the price above the overhead resistance of $0.26 on Aug. 23 and Aug. 24 but they could not sustain the higher levels as seen from the long wicks on the candlesticks. This may have tempted the short-term traders to book profits. That pulled the price down to the breakout level of $0.20, which is just above the 20-day EMA ($0.20).
The bulls purchased this drop and are attempting to resume the up-move toward the overhead resistance at $0.26. The bulls will have to clear this hurdle to open the doors for a possible rally to $0.33.
The rising moving averages suggest advantage to buyers but the negative divergence on the RSI indicates that the bullish momentum may be weakening. If the price turns down and breaks below the 20-day EMA, the advantage will turn in favor of the bears. The pair could then decline to the 50-day SMA ($0.15).
The 20-EMA on the 4-hour chart is flattening out and the RSI has been oscillating near the midpoint, indicating a balance between buyers and sellers. This could keep the pair range-bound between $0.20 and $0.26 for some time.
The next trending move could start if bulls push and sustain the price above $0.26 or below $0.20. Until then, the bulls are likely to buy the dips to the support at $0.20 and sell near the overhead resistance at $0.26. Trading inside the range is likely to remain volatile and random.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Like all altcoins, ATOM price fell as $550 million of BTC, ETH and altcoin positions were liquidated last week. Which is exactly why its 35% rebound is raising eyebrows.
As a market crash takes place, assets become oversold and typically there’s an “oversold bounce,” “return to mean,” “mean reversion,” or some price snapback to the bottom of the pre-crash range.
Afterward, the asset under study either consolidates, continues the downtrend, or returns to the bullish uptrend if the downside catalyst was not significant enough to break the market structure. That’s all kind of basic trading 101.
This week Cosmos (ATOM) price appears to be following this path and the altcoin is showing a bit of strength with a 35% gain since Aug. 22, but why?
Depending on how you look at it, and technical analysis is by all means a subjective process, ATOM price is either in an ascending channel or one could say a rounding bottom pattern is present with price close to breaking above the neckline.
Resistance above $13 (the horizontal black line in the bottom chart) is currently close to being tested and with sufficient volume and “stability” from the wider crypto-market, the price could be en-route to the 200-day moving average at $17.20.
Of course, if Bitcoin goes belly up at the daily close, or hawkish talk starts to leak out of Jackson Hole, the whole bullish structure for ATOM is likely kaput. So if one is trading, prepare and size accordingly.
If price manages to reach the $17 zone, without skipping a beat, your favorite technical analysts will then say something along the lines of:
“If ATOM price manages to flip the 200-MA to support, continuation to the $27 level could occur.”
Surely you’ve seen that on crypto Twitter lately, but let me find an example.
I bought this $ATOM retest as it's been leading the market
— CryptoGodJohn (@CryptoGodJohn) August 25, 2022
Looking for a move towards $14.4 as long as the lows hold here. pic.twitter.com/FjP8mzdFHK
What traders need to find out is whether ATOM’s upside momentum is simply the result of a “stable” market and Bitcoin and Ether trading in a relatively predictable range, or is there some Cosmos-related set of fundamentals which validate the current move and warrant opening a swing long?
Apparently, the analysts at VanEck, a multi-billion dollar asset management fund, think ATOM price will do a 160x move by 2030.
Hard to believe isn’t it and perhaps a little bit far fetched, but see for yourself. Here’s what they said:
“Based on our discounted cash flow analysis of potential Cosmos ecosystem value in 2030, we arrived at a $140 price target for the ATOM token, with downside to $1. With ATOM’s price at $10 as of 8/2/2022, we like the 14-1 odds presented and believe this is a buying opportunity for the token.”
Let’s take a brief look at their rationale for $140 ATOM.
VanEck analysts Patrick Bush and Matthew Sigel cite Cosmos’ Inter-Blockchain Communication Protocol (IBC) as a bullish catalyst primarily because “separate Cosmos SDK blockchains can open up communication channels to exchange data, messages, tokens and other digital assets.”
According to the analysts, “IBC architecture then enables each blockchain to perform activities on another blockchain without relying upon a trusted third party.” And it is this “permissionless and trustless” aspect of IBC which:
“...solves many of the issues presented by trusted bridging solutions that have led to over $1B in funds stolen through bridge hacks.”
The analysts also cite the Cosmos SDK, clear product to market fit and strong token value accrual being partially influenced by staking and a soon to launch “interchain security” mechanism by the Cosmos Hub as reasons for their long-term bullish perspective.
ATOM is set to become a primary collateral asset in three new stablecoins that will launch within the Cosmos ecosystem.
Why $ATOM is mooning?
— Ericzoo.eth (@ericzoo) August 24, 2022
The main collateral in three new @MakerDAO inspired stablecoins in the @cosmos ecosystem:$USK by @TeamKujira $IST by @agoric $CMST by @ComdexOfficial
These 3 chains will need $Atom to mint their stablecoins, locking up the supply.
Minting stablecoins will require the “lock” or depositing of ATOM tokens and according to the Cosmos Hub 2.0 roadmap, liquid staking is also expected to roll out in H2 2022.
During DeFi Summer and the post-summer revival, stablecoin issuance and liquid staking were two phenomena that boosted TVL for DeFi-oriented blockchains and while questionable and somewhat ponzi-esque, liquid staking adds buy pressure to a protocol’s native token, while also equipping it with utility within various aspects of the lending, borrowing and leveraging wings of decentralized finance.
Current data from StakingRewards shows that 65.84% of issued ATOM tokens are staked for a minimum yield of 17.85% and additional data from the analytics provider shows a near 189% rise in the number of ATOM stakers over the past 30-days.
The above appears to align with the thesis that liquid staking and stablecoin minting will soon launch. Despite the confluence of these bullish indicators, it’s important to remember that asset prices do not exist in a vacuum. While there may be a handful of bullish signals flashing from ATOM, the wider cryptocurrency market (including BTC) hangs at a precipice.
No-one is sure that the elusive “bottom” is in and cryptocurrencies are risk-off assets that exist in a macroeconomic climate where most institutional and retail investors are opposed to risk. The value accrual propositions for ATOM are strong and staking, stablecoin minting and liquid staking proved to be powerful bullish catalysts for DeFi tokens and altcoins in the past. But everything works until it doesn't, right?
Remember Waves, Terra (LUNA) and Celsius (CEL)? All experimented with liquid staking, lending, asset collateralization and stablecoins, yet today they’re belly up from a value perspective.
Of course Cosmos isn’t LUNA, Waves or CEL. It’s a wide-ranging, cross-chain equipped ecosystem with a $12.6 billion market capitalization, according to data from CoinGecko.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Cosmos was a notable gainer on Tuesday, as prices of the token rose by as much as 12% in the day. Today’s surge sees the cryptocurrency climb for a third straight day, hitting a five-day high in the process. Near protocol was also in the green, as it rebounded following recent declines. Cosmos (ATOM) Cosmos […]
Following three consecutive days of declines, shiba inu rebounded on Saturday, as the meme coin appears to have found a support point. Cosmos was also higher, in what has mostly been a bearish start to the weekend. As of writing, the global crypto market cap is down 1.31%. Shiba Inu (SHIB) Shiba inu (SHIB) was […]
A popular analyst is digging into the charts to update his price targets for a handful of leading crypto assets. Michaël van de Poppe first tells his 622,600 Twitter followers that he’s keeping a close eye on support levels for scalability and interoperability ecosystem Cosmos (ATOM), which recently gave up gains from the latest leg […]
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