Cosmos (ATOM) And Avalanche (AVAX) Stay Intact In Double Bottom Formation – What To Watch For?

Cosmos and Avalanche are showing signs of stability as they navigate a double bottom pattern. These cryptocurrencies are catching the attention of traders who are eager to see if they will break out. The following article explores what makes these coins stand out and what to look for in their potential growth.

Cosmos (ATOM) Price Overview: Past Trends and Key Trading Zones

Past month data shows Cosmos trading with a drop of about 5% and a six-month decline nearing 9%, reflecting a period of subdued activity. The price has remained within a range of approximately $3.41 to $6.14 as market participants weighed the coin’s value against shifting market sentiment. Movement has been modest despite ongoing fluctuations, indicating a phase of consolidation amid overall downward pressure.

Current levels see immediate support around $2.18 and resistance at $7.64, with a secondary resistance near $10.37. Negative momentum and an underperforming RSI point to bears holding sway for now, while the oscillators hint at no clear trend. Trading ideas revolve around watching for a breakdown below support or a breakout above resistance, which could signal a change in market direction.

Avalanche's Recent Struggles and Current Setup

AVAX has recorded notable declines over the past month and six months. The one month drop of 14.21% and a steep six-month decrease of 30.35% indicate a challenging period for the coin. A minor one week slip of 0.493% shows that short-term shifts have been less dramatic, though the overall trend remains downward. These moves reflect a time of subdued investor sentiment without any significant price rallies or dramatic reversals.

The current price is between $16.74 and $31.56, with key resistance at $40.73 and support near $11.10. The RSI at 44.23 and oscillators suggest mixed signals, yet bearish pressure persists. Trading strategies should involve buying near support while monitoring for upward breaks beyond resistance, which could signal a potential shift to bullish momentum.

Conclusion

ATOM and AVAX are holding steady within their double bottom formation. This pattern often hints at a potential upward trend. Observing their price action in the near term is crucial. Key support and resistance levels must be monitored. If these coins break through resistance levels, a significant upward move could be expected. If they fall through support, a downtrend might follow. Patience and careful observation are advisable as these patterns develop.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.