Rally or not, ‘oversold’ ATOM’s upside is at the risk of the following

ambcrypto.com:

If you bought ATOM at or near its bottom in June and are still holding the bag, then you should be pleased with your decision. In fact, the cryptocurrency has maintained an overall bullish trajectory ever since it pivoted after a major crash earlier this year.

ATOM has been trading within an ascending range and its latest price action indicates that its bulls are growing stronger. Furthermore, it has concluded the week as one of the market’s best-performing cryptos.

ATOM has seen a 48% uptick since Wednesday after bouncing from just above its support line and its 50-day Moving Average. Interestingly, the rally was strong enough to push above its resistance line, as well as its 200-day MA.

Source: TradingView

Now, although ATOM’s strong rally this week is a sign that that the bulls have gotten stronger, there are signs of a potential pullback.

For instance, the altcoin briefly became overbought, according to the RSI, with the upside already yielding some profit-taking.

Source: TradingView

The upside received strong support from the sustained hike in market sentiment in the second half of the week. ATOM’s rally was particularly underpinned by a sharp uptick in social dominance and development activity.

Source: Santiment

Cosmos’s development-related announcements during the week include a new cosmos SDK upgrade. The latter focuses on groups and governance-related upgrades designed to improve the Cosmos SDK.

The other major development is the addition of a new project called Delphi Digital into the Cosmos ecosystem. The new addition will support easier development of interconnected DApps, hence contributing to Cosmos’s growth.