Creation (Cantlet) has the potential to record major gains in the upcoming weeks primarily because its longer-timeframe chart is showing a bullish continuation pattern.

Dubbed "balderdash flag," the structure appears every bit the asset trends lower while bouncing betwixt two downward sloping trendlines. However, it eventually breaks out of the range, in the management of its previous trend, with a turn a profit target at length equal to the size of its previous uptrend, which is also known as the flagpole.

ATOM/USD weekly toll nautical chart featuring Bull Flag setup. Source: TradingView

Therefore, in a "perfect" world, if ATOM is to break above the flag's upper trendline (with a rise in trading volume), it may ascension by as much every bit the flagpole'southward tiptop around $35. This sets a price target near $65 as when measured from the current potential breakout point.

Nearly 64% of ATOM'south total supply is staked

The bullish setup in ATOM appeared as the token rose over 330% from its June low at $7.82 to this week'southward swing high near $32.

Circulating token scarcity could be playing a part in driving buyers into the market. Data fetched by Messari showed that nearly 64% of the current ATOM supply is staked.

Cantlet staking data. Source: Messari

According to the data, Cosmos investors have staked over 180 million ATOM tokens to get validators on its Creation Hub, a proof-of-stake blockchain that constitutes one of many hubs on the network. In return, users receive a portion of the network transaction fees and block rewards.

Pentoshi, an contained market analyst, noted that the rising number of staked Cantlet tokens take been instrumental in pushing its price upwards.

The pseudonymous Twitterati added that ATOM sellers have been losing momentum, citing 2 corrections during the fourth quarter that got stopped midway due to a higher buying pressure near the token's previous all-time high levels.

ATOM/USD daily toll chart by Pentoshi. Source: TradingView

According to the analyst, ATOM is seeing articulate:

"Signs of absorption"

Related: Cost analysis 12/1: BTC, ETH, BNB, SOL, ADA, XRP, DOT, DOGE, AVAX, SHIB

Avalanche fractal highlights Cantlet's potential

Some other annotator, known by the pseudonym Bluntz, anticipated that Atom would go along its rally upward based on similar gains posted by 1 of its top blockchain rivals, Avalanche (AVAX), earlier this twelvemonth.

Like Pentoshi, Bluntz views ATOM's take a chance of revisiting its previous record-high every bit a base to go on its balderdash run. In a like setup, AVAX rallied by nearly 250% later finding a solid footing inside the $l to $lx support area.

ATOM/USD vs AVAX/USD daily toll chart by Bluntz. Source: TradingView

According to Bluntz, Cantlet could easily hit $100 in the medium-term.

The views and opinions expressed hither are solely those of the writer and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves take chances, you should acquit your own enquiry when making a decision.