![Cosmos [ATOM] forms a range; here’s why the bulls eye the $17.5-target](https://blockchaingist.com/wp-content/uploads/2022/10/PP-2-ATOM-cover-e1667213144314.jpg)
Cosmos [ATOM] forms a range, which explains why the bulls aim $17.5.
ATOM appeared to trade within a 2-month range. Bullish momentum returned after last week’s rally.
On the higher timeframe charts, the outlook for Cosmos [ATOM] was once again optimistic.
The significant level of resistance at $13.5 was breached. The $13.1-$13.3 region was significant on shorter timescales, and it was also converted to support.
The AI forecasts a bullish scenario with a rise to $24, but the negative scenario involving a return to $11 seems more realistic. This is due to the August construction of the mountain range.
ATOM’s range highs are $16.7, and the stock is anticipated to head north in the near future.
ATOM developed a range (white) between $10.5 and $16.6 on the price charts. $13.5 was the midpoint of this range.
Over the past two days, ATOM was able to surpass this degree of resistance and convert it into support. Indicating bullish momentum, the 1-day RSI has also gone over the 50-point threshold.
In contrast, the CMF has been lackluster during the past two weeks. It fluctuated between -0.05 and +0.05 and did not indicate a large capital inflow or outflow.
Above the $16.6 range highs is a $19 bearish order block. This order block was predicated on the daily period, and ATOM has not traded above this zone since the beginning of May.
Therefore, in the coming weeks, the $16.5-$17 range is a potential profit-taking zone for long positions. Even a push into the $19 zone would not guarantee the bulls triumph. Rather, an increase in sales could be the effect of this action.
In recent weeks, construction activity has been at a peak. It has been significantly elevated since mid-August. Consequently, investors can have some faith in the $7.7 billion asset’s market value. During the same time frame, the weighted sentiment has also experienced days of extreme positivity.
As indicated by the Long/Short ratio, the momentum shifted in favor of bullish speculators over the past twenty-four hours. This ratio indicated that 50.6% of market participants were bullish throughout this period.
The technical indicators did not indicate a significant amount of purchasing pressure, but the price action suggested a bullish market structure. The rise above the median level appeared to be a positive development as well. If Bitcoin can defend the short-term support zone between $20,000 and $20,200, it is likely that both BTC and DOT will have room to grow higher.
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