Cosmos (ATOM) and Avalanche (AVAX) Hold Double Bottom Formation Amid Market Caution
1min read Cosmos (ATOM) and Avalanche (AVAX) have shown resilience in maintaining their double bottom formation, a pattern that often signals potential upward movement. This stability has caught the attention of traders who are closely monitoring these cryptocurrencies for any signs of a breakout.
Cosmos (ATOM) has experienced a 5% drop over the past month and a 9% decline over the past six months, indicating a period of subdued activity. The price has fluctuated within a range of approximately $3.41 to $6.14, reflecting market participants' cautious approach to the coin's value amidst shifting market sentiment. Despite these fluctuations, the movement has been modest, suggesting a phase of consolidation under overall downward pressure.
Ask Aime: What is the likelihood of a breakout in Cosmos (ATOM) and Avalanche (AVAX)?
Currently, cosmos (ATOM) finds immediate support around $2.18 and resistance at $7.64, with a secondary resistance near $10.37. The negative momentum and underperforming Relative Strength Index (RSI) indicate that bears currently hold sway. However, the oscillators do not show a clear trend, leaving room for potential changes. Traders are advised to watch for a breakdown below support or a breakout above resistance, which could signal a shift in market direction.
Avalanche (AVAX) has faced significant challenges, with a 14.21% drop over the past month and a 30.35% decrease over the past six months. The one-week slip of 0.493% shows that short-term shifts have been less dramatic, but the overall trend remains downward. This reflects a period of subdued investor sentiment without any significant price rallies or dramatic reversals.
The current price of Avalanche (AVAX) is between $16.74 and $31.56, with key resistance at $40.73 and support near $11.10. The RSI at 44.23 and oscillators suggest mixed signals, but bearish pressure persists. Trading strategies should involve buying near support while monitoring for upward breaks beyond resistance, which could signal a potential shift to bullish momentum.
Both atom and avax are holding steady within their double bottom formation, a pattern that often hints at a potential upward trend. Observing their price action in the near term is crucial. Key support and resistance levels must be monitored. If these coins break through resistance levels, a significant upward move could be expected. If they fall through support, a downtrend might follow. Patience and careful observation are advisable as these patterns develop.
