The ATOM price has been increasing since the beginning of September. It recently moved above a significant resistance area and could continue moving higher.
On December 5, Binance announced it will support ATOM staking. The minimum amount of ATOM required for an individual to be eligible for staking is set at 0.5. Since the announcement, the ATOM price has increased by 16 percent.
Cryptocurrency trader @devchart stated that the ATOM price is currently in the process of breaking out. However, he suggested that the price should first flip the resistance area before entertaining the possibility of entering the trade.
— Devchart (Andre) (@devchart) December 11, 2019
Since the tweet, the ATOM price has moved above the resistance area. Where will the price go next? Continue reading below if you are interested in finding out.
Since reaching a low of 18,000 satoshis on September 5, the ATOM price has increased by 200 percent. It is following an ascending support line and has already flipped the 40,000 satoshis resistance area. It just flipped the next one at 50,000 satoshis.
The next resistance areas are found at 67,000 and 80,000 satoshis These areas align with the targets given by @theeurosniper.
— €uroSniper (@TheEuroSniper) December 11, 2019
While the ATOM price initially generated bearish divergence, its descending trend-line was broken on the breakout above the resistance area. This likely invalidates the divergence and indicates that an upward move is to be expected.
Possible ATOM Price Top
The ATOM price is possibly completing the same pattern that transpired over September/October. After finishing the first wave, it created three slightly higher highs before falling sharply to the support line.
Currently, it is in the process of doing these highs. If the movement takes the same length of time, the ATOM price should decrease to the support line tomorrow. Additionally, the price increased by 50 percent after reaching the support line in November, and doing so again would place it right at the 67,000 resistance area. This should be the high of the first wave, and the ATOM price could continue towards 80,000 afterward.
To conclude, the ATOM price has likely begun a bullish market cycle. While it is expected to reach the 67,000 resistance area and possibly move higher, a short-term correction is expected before it does.
Images courtesy of TradingView.
Source: Be In Crypto