Is it too late to buy Atom on Tuesday?

cosmos atom

Atom (ATOM/USD) was up over 10% on Tuesday and has given a breakout after a month of consolidating, Atom is looking very strong for the coming weeks and it could also hit a new all-time high soon. However, is it too late to enter on Tuesday after the 10% spike?

The charts for October-

  • Atom has formed a descending triangle in October and has been rejected from the trendline multiple times in the past few weeks however it finally gave a strong breakout on Tuesday.
  • The breakout on Tuesday was also indicated by the bullish RSI divergence formed earlier this week.
  • Investors still have to be cautious as volumes are not extremely high and have just started increasing, however, they are expected to rise on Wednesday alongside a continuation of the rally.
  • For investors not willing to take on a lot of risk, the first target can be set at $40, a target of a new all-time high can also be set by investors willing to take a higher rise
  • If Atom is able to continue with the same momentum it has shown on Tuesday, a new all-time can be hit very soon.
  • A stop-loss can be set at $32.

Is it too late to enter on Tuesday?

  • After a sharp rally on Tuesday, the RSI was in the overbought zone and also formed a bearish divergence, which is indicating towards a small pullback before a continuation of the rally.
  • Atom also showed some high selling volumes after rallying, showing that selling pressure is slowly rising and that a small pullback will be seen soon. 
  • A long entry can be taken at $37 which is a demand zone and should also be the point from which Atom could resume it’s rally.

Conclusion

After a strong breakout on Tuesday, a huge move can be expected and investors can take long entries once a small pullback is seen with targets above the all-time high.

The post Is it too late to buy Atom on Tuesday? appeared first on Invezz.

Publication date: 
10/26/2021 - 14:11
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.