ATOM and ETC: Altcoin Analysis for July 18, 2023
With Bitcoin’s volatility remaining at a low for the past month, we turn our focus to the market dynamics of cryptocurrencies Cosmos (ATOM) and Ethereum Classic (ETC).
Cosmos (ATOM)
Since February 2023, ATOM has been in a significant downtrend. To switch the momentum to an uptrend, the coin must breach the resistance zone of $10.26-$10.63 and establish itself above the $11 level. A notable concentration of sell orders is found around the $9.5 mark.
The most robust support zone lies between $8.76 and $9.16. The price has reacted to this range three times in the past month, so if it manages to hold, the coin has a strong likelihood of resuming its local upward trajectory. However, if the support zone fails to hold, we could see a broader downward trend extend to levels of $8.27 and $7.23, potentially setting a new yearly low.
ATOM chart on the H4 timeframe
Ethereum Classic (ETC)
ETC has been experiencing a downward trend since September 2022 when Ethereum switched to a Proof of Stake (PoS) consensus mechanism. After the Merge, ETC's ascent halted, and sellers quickly pulled the price back under $30.
At present, the crypto asset is oscillating between the support zone of $17.83-$18.7 and the resistance zone of $19.74-$20.33. If the buyers manage to overcome this resistance, the next seller liquidity is expected to be encountered at the $20.75 mark and within the range of $21.3-$22. The likelihood of surpassing the $23.28 high is currently seen as a less probable scenario.
In the case of a more profound correction, ETC might explore the support zone of $16.24-$17.09, the $15.3 mark, and even breach the annual low below $12.7. This scenario is being entertained given a potential BTC downturn and a generally negative news environment.
ETC chart on the H4 timeframe
The BTC market situation has not shifted since yesterday's analysis.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the The Coinomist editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from The Coinomist:
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