Cosmos (ATOM) is one of the favorite fundamental plays for the Token Metrics team. Cosmos was the first alt to break the pattern of pumping on a bear market rally and then failing. When Cosmos (ATOM) went up, it consolidated and then went higher in a stair step fashion.
Next comes the big test for Cosmos (ATOM). Specifically, we want to see if Cosmos (ATOM) can hold a big technical point after a sharp dip both in ATOM and the overall market.
Cosmos (ATOM) has made a return move to its "previous 4th" level. The previous 4th is Elliot Wave jargon for the point where the final leg of the bear market started. Following wave theory, the fact that Cosmos (ATOM) burst through this level is very bullish . We would love to see if Cosmos (ATOM) finds support at this level to confirm what the theory tells us.
We also noticed that 4230 is the location of a high volume zone and the 21-day moving average. Both of these zones can act as support.
Bottom Line: We like buying the dip in Cosmos (ATOM) at these levels. Risk reward is good for traders near 4230. We hope that Bitcoin ( BTC ) stabilizes and that allows alts to continue their up move.
DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.