AVAX and ATOM Altcoin Analysis for November 16, 2023
Bitcoin has successfully rebounded from its drop to $34,800 and is now once again trading above the $37,000 mark. Here's an analysis of the market situation for Avalanche (AVAX) and Cosmos Hub (ATOM) as of Thursday, November 16.
This morning, AVAX reached a new yearly high at $24.05. Over the past month, the asset has soared by 170%, with its price moving from $16 to $24 in just the last three days.
The likelihood of further growth for Avalanche remains. Potential next targets for buyers might be the resistance levels at $25 and $26.5. However, this will require solidifying its position above the new yearly high of $24.05.
Should a correction occur, the asset could fall to support zones between $20.92 and $22.00, $20.4, and between $17.83 and $18.80. These levels would present favorable buying opportunities on the spot market, especially if the BTC price remains above $35,000. Conversely, a more aggressive correction in BTC could lead to a significantly steeper decline in altcoin prices, potentially erasing many support areas.
AVAX chart on the М30 timeframe
Cosmos Hub (ATOM)
In comparison to other altcoins, the price growth of ATOM has been more gradual. The asset has appreciated by 60% over the past month and is currently hovering near the resistance zone of $10.20-$10.58. Notably, ATOM's rise seems quite steady, characterized by regular corrections and pullbacks. This kind of price movement is generally seen as more sustainable than a rapid, short-term spike.
The continuation of growth and reaching new highs are the current focus. Once the present resistance range is breached, buyers could set their sights on the next resistance levels at $11.0 and $11.5. As the new year approaches, we might witness an accelerated rise to the $15.4 level, marking the asset's annual high that hasn’t been tested for over 10 months.
A local correction in ATOM could see the asset drop to the $9.57 level. Below this, there is a support zone ranging from $8.62 to $9.13, and a buyer’s level at $8.15. These marks present appealing opportunities for opening long positions.
ATOM on the H1 timeframe
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Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
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 price movement 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.
This analysis was informed by the following educational materials and articles from GN Crypto: