Welcome back to our deep dive into the crypto verse! Today, we’re analyzing Cosmos (ATOM), a highly decentralized, interoperable blockchain protocol that has seen significant volatility in the past year.
With a recent 1.46% price drop, investors wonder where the Cosmos is headed. Strap in as we combine deep learning forecasts and traditional indicators to help you navigate the vast universe of Cosmos.
The Current State of Cosmos: A Snapshot
As of this writing, Cosmos (ATOM) stands at $6.32, showing a 1.46% drop. The currency has gone through quite a ride, with a 1-year change of -48.61%, and a 30-day change of -14.23%. However, all is not gloom, as deep learning forecasts suggest some green days ahead.
Support and Resistance: Setting Boundaries in the Cosmos
The support and resistance levels for Cosmos give us insight into the possible trading range for the asset. The first line of support stands at $6.29, while the resistance levels go up to $7.67 and $9.12.
Trend Indicators: Sailing Through a Storm
Most indicators confirm that ATOM is in a downtrend, with short to long-term EMAs, SMAs, and WMAs all signaling a downward trajectory. The ADX, which measures trend strength, indicates a weak trend, leaving a window of potential for a trend reversal.
Momentum Indicators: A Glimmer of Hope?
While the MACD is bearish, indicators such as RSI and MFI are neutral, and the Stochastic Oscillator and Williams R show oversold conditions. These mixed signals suggest a possible reversal could be in the cards, which is also supported by the “Bearish Engulfing” and “Wedge” patterns on the chart.
Deep Learning Forecast: The Silver Lining
Despite the current downtrend, our deep-learning models paint a more optimistic picture. Our deep learning forecast is an AI-driven forecast method that incorporates historic price action, technical indicators and is constantly trained to improve results:
- 24H Forecast: $6.36 (0.66%)
- 7D Forecast: $6.98 (10.45%)
- 30D Forecast: $7.20 (14.03%)
The forecasts suggest that short-term gains may be modest, but we could see a potential 14.03% surge in the next 30 days.
ATOM — Trade Setup: Cosmos at the Crossroads
Given these mixed signals and promising forecasts, here’s a trade setup designed for both short-term traders and long-term investors:
For Swing Traders:
- Entry Point: Around $6.36 as per 24H deep learning forecast
- Stop-Loss: Below the first support level, say at $6.25
- Take-Profit: Just below the 7D Forecast at around $6.90
- Trade Alert: Watch for a bullish crossover in MACD for confirmation
For Long-term Investors:
- Entry Point: Near the current price of $6.32
- Dollar-Cost Averaging: If the price drops closer to the yearly low of $6.375, it might be an opportunity to average down.
- Stop-Loss: Around the first support level at $6.29
- Trade Alert: Look for a strengthening ADX or an RSI moving out of oversold conditions as a more reliable long-term signal
Risks and Conclusions
No trade is without risks. With Cosmos, the main risk comes from the overall downtrend and volatility. However, given the oversold conditions and the deep learning forecast of a 14% uptick, it might just be the right time to invest in Cosmos (ATOM).
As always, perform your own due diligence and consult with financial advisors before jumping into any trade.
Your Next Step(s)
→ Check out the CryptoKnowledge for more ATOM details & data
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