Top 3 Coins to Watch Today: ATOM, AAVE, AVAX – January 7 Trading Analysis

Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.

1. Cosmos (ATOM)

Cosmos ATOM bills itself as a project that solves some of the “hardest problems” facing the blockchain industry. It aims to offer an antidote to “slow, expensive, unscalable and environmentally harmful” proof-of-work protocols, like those used by Bitcoin, by offering an ecosystem of connected blockchains. ATOM tokens are earned through a hybrid proof-of-stake algorithm and they help to keep the Cosmos Hub, the project’s flagship blockchain, secure. This cryptocurrency also has a role in the network’s governance.

ATOM Price Analysis

At the time of writing, ATOM is ranked the 25^th cryptocurrency globally and the current price is US$38.53. Let’s take a look at the chart below for price analysis:

December provided respectable 115% gains for bulls who bought ATOM at the monthly open, with the price finding resistance near $42.12.

If bears take back control this month, the top of the former gap beginning at $35.44 may provide support for at least a short-term bounce. The top of the consolidation range starting near $33.58 is more likely to provide substantial support.

The most robust support is likely to be found in the overlapping consolidation ranges between $31.74 and $29.06, with a sharp slice through these levels possibly suggesting the end of the bull run.

The region from approximately $40.70 to the most recent swing high is likely to provide some resistance. The swing high provides a reasonable first target for a possible next leg up. 

If this high breaks, the 1.0 extension near $45.21 and the 2.0 extension near $52.90 may provide the next primary new high targets.

2. Aave (AAVE)

AAVE is a decentralised finance protocol that allows people to lend and borrow crypto. Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity. AAVE provides holders with discounted fees on the platform, and it also serves as a governance token – giving owners a say in the future development of the protocol.

AAVE Price Analysis

At the time of writing, AAVE is ranked the 49^th cryptocurrency globally and the current price is US$223.61. Let’s take a look at the chart below for price analysis:

AAVE‘s strong downtrend that began in November has retraced most of its Q4 move, recently sweeping lows near $190 but struggling to find strong support.

A sweep of the relatively equal lows near $215 into possible support around $210, combined with bullish market conditions, could be the catalyst that begins to form a bottom. If this level fails, bulls might buy the monthly gap’s low near $197.

The swing high near $238 may form resistance to any sudden pumps as holders unload some of their position. A more substantial move might sweep relatively swing highs into probable resistance near $246, potentially reaching up to the new monthly high near $255 and $260.

3. Avalanche (AVAX)

Avalanche AVAX is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is blazingly fast, low-cost, and green. Any smart contract-enabled application can outperform its competition on Avalanche. AVAX is the native token of Avalanche. It is a hard-capped, scarce asset that is used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche.

AVAX Price Analysis

At the time of writing, AVAX is ranked the 11^th cryptocurrency globally and the current price is US$94.61. Let’s take a look at the chart below for price analysis:

AVAX‘s 75% rally in December ended with an almost 49% retracement as the rest of the altcoin market dropped. Bulls stepped in near the 61.8% retracement of Q4’s move, creating a consolidation that ended with last week’s bullish impulse to resistance near $114.35.

With the 9, 18 and 40 EMAs stacked bullish and a bullish higher-timeframe trend, it’s reasonable to anticipate retracement to possible support before further bullish expansion. 

Near the 40 EMA, a broad zone from $96.12 to $84.35 could see interest from bulls before further expansion. If this level fails, bears might capitalise on any sharp moves down in Bitcoin, aiming for possible support near the 80% retracement, at $76.50, and potentially lower to a higher-timeframe support zone between $70.82 and $65.77.

If the higher-timeframe bullish trend resumes and the current resistance near $110.35 breaks, the wicks near $126.84 and the all-time high might see profit-taking. 

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Where to Buy or Trade Altcoins?

These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.