Can Cosmos (ATOM) Break the $11.3 Resistance for More Gains?

After hitting a steep price barrier around the $12.5 price zone, which led to a deep retracement, ATOM has recovered superbly in the month of February.

Our previous coverage earlier this month, when ATOM dipped to the $8.8 support level, recommended an entry at $9.1, for 15% gains in the short-term. This has panned out well, and the token has has steadily advanced, flipping the $10.3 resistance to support.

Despite the bullish sentiment, a new barrier stands in the way of further gains for buyers at the $11.3 resistance level.

Do bulls have the buying pressure to overcome sellers at this critical price level?

Cosmos - Facilitating Communication Between DApps

ATOM serves as the native token of the Cosmos blockchain. The Cosmos hub offers a decentralized network that aims to foster scalability and operability with Cosmos widely referred to as the "Internet of Blockchains."

Cosmos is the first entirely free platform to permit interoperability between decentralized applications on different blockchains including Binance Chain, Terra and Crypto.org, to name a few. Cosmos currently has over $151 billion of digital assets under management. ATOM’s use case revolves around Cosmos’ network governance, staking, and transaction fees.

Buyers Remain in Ascendency

ATOM’s capital inflows reached a 2024 high over the past 24 hours, according to the Chaikin Money Flow (CMF) indicator. The CMF’s reading of +0.29 echoed the massive inflow of big capital into ATOM.

This reflected in the Relative Strength Index (RSI) rising close to the overbought zone. This further signaled the presence of strong buying pressure.

Based on the chart indicators and price action, ATOM stands an above-average chance of breaking the $11.3 resistance. This could provide buyers with a 16% profit opportunity with price poised to reach $13.

Intraday buyers can wait for a bullish candle close above $11.3 before entering new buy positions. Overall, traders should actively track market sentiment, as a shift in sentiment could reverse the bullish trend.

Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.