Cosmos token forms a Doji signal after a retracement. What does it mean?

Cosmos token forms a Doji signal after a retracement. What does it mean?

By Motiur Rahman - min read
  • Cosmos token has maintained an uptrend since June.

  • There are speculations for a greater utility of ATOM with Cosmos 2.0.

  • ATOM is a buy but expecting a retracement.

Cosmos ATOM/USD has been one of the strongest cryptocurrencies lately. Since mid-June, the cryptocurrency has maintained a system of higher highs and higher lows. ATOM is also yet to break below the 50-day moving average since July. What is the possible reason for the sustained surge?

Speculations around Cosmos 2.0 could be attracting ATOM buyers. Cosmos 2.0 is expected to enhance the interoperability, functionality, and overall Cosmos infrastructure. There is no specific date for it. However, the discussions are expected to rise during the Cosmoverse 2022 event kicking up on September 28. The conference will also see more side events, including the Osmos Dex and Loop Finance.

ATOM price reaction and prediction after Doji signal

Kraken

Kraken is a San Francisco-based cryptocurrency exchange that allows users to trade various digital currencies. With a strong emphasis on security, Kraken employs cold storage for most funds and offers two-factor authentication (2FA). Its user-friendly interface provides real-time charts and order books, making it suitable for both beginners and experienced traders. Kraken also complies with regulatory requirements in the jurisdictions where it operates.

Uphold

Uphold is a global digital money platform that offers financial services. It deals with 250+ currencies (both traditional and crypto) and commodities, facilitating more than US$4 billion in transactions. Uphold’s vision is to create a future where everyone has access to safe, transparent, fair, and affordable financial services

A Doji is an important price signal for a technical reader. It is characterized by a candlestick showing an equal or almost the same opening and closing price. The candlestick conveys indecision between buyers and sellers. 

After retracing from a high of $17, ATOM formed a Doji signal at the minor support of $13. It signified a lack of directional bias. Since then, buyers have managed to outwit the sellers as the price shot up.

Source – TradingView

From the technical outlook, a Doji signal at the minor support took ATOM to $15. The price is experiencing some resistance. The MACD indicator shows a waning momentum in price.

Concluding thoughts

ATOM remains in a strong bullish momentum. A Doji signal at the support followed by a price surge confirmed a bullish momentum. The cryptocurrency is facing resistance, and a potential retracement could occur. Investors should consider buying on a retracement potentially at or close to $13.