Tuesday saw ATOM reach its lowest level after a year of trading. While the trend remains highly bearish on the daily chart, it has retraced briefly up following a double-digit gain in the last 72 hours.
ATOM has continued to show signs of weakness on the daily timeframe following a consistent roller coaster in the last three months. It appeared to have slowed down a bit following a recent bounce off the $0.39 level.
This level marked its lowest price in a year, and from the look of things, more breakdowns are underway as the market structure remains bearish from a short-term perspective. While the next breakdown may trigger more losses, it should signal a bearish extension on the mid-term scale.
As seen on the daily chart, the descending trendline has been serving as resistance since last December. If the price manages to break above it, we may a major price retracement before resuming bearish at full speed. Retracing above the peak level should confirm a complete trend reversal.
Looking back from where it initiated fall from the peak level of $10.7, ATOM has seen more than 70% loss. This put the crypto among the top loser mid-cap altcoins in the last three months. While there are no signs of a reversal yet, its mid-term bearish momentum may last to $1 before halting.
ATOM’s Key Levels To Watch
Source: Tradingview
The key resistance level for a retest right now lies at $4.45. If the price breaks above the descending trendline, the immediate resistance level for an increase is $5.51. Right above it lies the $6.1 resistance.
Resuming selling, the weekly $3.39 low is the key support to watch for a breakdown. A new low may come at $3 and probably $2.5 in the future.
Key Resistance Levels: $4.45, $5.15, $6.1
Key Support Levels: $3.39, $3, $2.5
- Spot Price: $0.965
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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