In this new digital block on Wednesday, let’s review ATOM, the cryptocurrency that has been in a prolonged decline for 10 weeks now. The goal of the day is to provide you with a technical analysis of the original assets ofCosmos ecosystem. Will this project, consisting of building a network of blockchains, be robust enough over the next few months to bring ATOM to its old price levels? The task is not simple, far from it. In order to see more clearly, let’s move on to our graphs.
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ATOM Cryptocurrency at its End Level
Since it was high all the time $44.7And the corn It continues to fall towards price levels not seen since last summer. The trend line that made lower and higher lows was broken, which gave the first sign of strong sellers’ ownership. fast enough, corn Closed below the main level for the year. This price action confirmed the creation of a weekly downtrend, which is the direction the asset is currently in. However, ATOM is now in the summer 2021 support zone in $8.6 / $9.
The current challenge is as follows: to monitor the reaction of the price at this level to determine, or not, the reaction of buyers. The difference with last summer is clearly the weakness of the buyers. While we have on three occasions seen good matches to defend this area, interest appears to be almost non-existent at the moment. in weekly, We can imagine a bounce to correct part of the downside move, but this will all depend heavily on the macroeconomic context and interest in risky assets.
Since the weekly trend is bearish, it seems preferable to choose a bearish scenario over the next few months, although this is not absolute. A breakout of the support area where the price is currently located, which was previously resistance, may lead to a re-integration of ATOM into the range area from August 2020 to January 2021. In addition to a return to the pivot area at $5.80, it is quite possible for the price to decline. To the minimum which was, at the time, $4.80. And again, the most pessimistic scenario is a re-incorporation of the first range with a return of $3. Of course, rest assured. We’re not there yet, far from it.
I arrive in the daily landscape mode, but for how long?
What we can see corn, It is the importance of the key levels that we set on a weekly basis. It is easy to understand price movements, hence the need to look for patterns on lower time frames. Since April 2022, we can see the formation of lowering bottoms (LL) and lower peaks (LH). These are the lowest and lowest highs and lows. Moreover, I remind you that ATOM greatly supports it. More than ever, buyers need to regain their strength if we do not want to see a larger bearish scenario.
Currently, ATOM is trading between the recent high of $12.49 and $8.55. As long as the price moves between these two levels, there will be absolutely nothing significant to report. In fact, this will correspond to slight fluctuations during the day. Thus, if the price records a candle above its recent high, we will have a signal of a possible change in the structure. This may lead to an even greater elevation of the ATOM. In this context, we can consider an optimistic return to $17, without breaking the downtrend…
Conversely, if the sellers don’t get tired and continue to push the price lower, watch out for a close below $8.55. This will indicate a continuation of the downtrend with a new low, with the downside breakout of the weekly support area starting. Thus, it will be necessary to monitor the price reaction in this time frame. This bearish scenario may initially take us to $6.95. Then, in the second step, ATOM could touch the pivotal area at $5.40/5.80. Finally, as mentioned earlier, a return to the low of $4.80 should not be ruled out.
Yes, the cryptocurrency block is already coming to an end. However, do not worry! You can find us for a new analysis every Wednesday! While waiting for the assets next week, you now have all the key levels in your hands To understand the future movements of ATOM. As it is currently on major support, the downside may trigger a breach of the latter. So far, nothing has happened yet. Will last minute buyers show up? More than ever, it is imperative that we be on the alert daily to determine the future direction an asset will take as quickly as possible.
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