HomeLatest NewsCosmos is taking a breather after 34% gains in a week – How to trade it

Cosmos is taking a breather after 34% gains in a week – How to trade it

Motiur Rahman
  • Cosmos has a cool 34% gain in 7 days

  • The cryptocurrency could correct after the latest gains

  • Investors should look to add positions on a retracement

Many cryptocurrencies have returned by double digits in the past week. As a result, you expect some corrections as buyer exhaustion settles in. An increase in the number of traders taking profits could also lead to corrections. For short-term traders, knowing when to exit is as important as the entry itself. Cosmos token ATOM/USD is one that investors should be keen on.

A return of 34% in the past week is no mean achievement for Cosmos token. It reveals that investors still believe in the self-proclaimed “Internet of blockchains.” There is no doubt that, given the recent gains, more investors will get in. That will fuel an explosive rise in ATOM price. Similarly, ATOM is a crypto to hold if you are looking for longer-term value. 

However, ATOM is set for a correction after the latest gains. Technical indicators show where to buy next.

Cosmos hits a minor resistance as the price corrects slightly

Source – TradingView

Technically, ATOM trades at a minor resistance of $10. The level coincided with almost overbought conditions from the RSI reading of 65. There is no doubt that the cryptocurrency can break the minor resistance due to its recent strengths. However, we urge that it is a level of interest to short-term traders. Exiting positions at the level will allow entry again at the $8.8 support. The cryptocurrency is still a hold in the long term. 

Concluding thoughts

Cosmos token remains strong despite hitting resistance at $10. The resistance could force a correction back to the $8.8 support. Short-term investors can exit and buy lower. ATOM is still a hold for long-term investors.