ATOM Technical Analysis: The Reversal Beginning or a Shot to $55?

Peter  |  Sep 11, 2021

ATOM

This trading week in the ATOM market brought the most intrigue about the development of events. During a fall in the Bitcoin price on 7 September, the ATOM price also reacted to the provocation. However, destabilizing the market for 2 days, sellers could not keep the initiative in their hands. The coin price fall to the mark of $17.55 partially provoked buyers to take active action.

Thus, the ATOM price has updated the local high and is again testing the main global zone of $27-$32. After a previous unsuccessful attempt by buyers for 4 months to take control of this range, we saw a strong correction of the ATOM price. Given the trading volumes that were recorded this week and the significant presence of sellers in the ATOM market, there is a high probability of the price reversal.

To keep the initiative in case of correction, it is important for buyers to keep the range of $19-$21. From this range, it is still possible to continue the growth wave without wasting time. Though, losing control of the $19-$21 range will mark the beginning of a long and protracted ATOM price correction with a final target of $12.

ATOM Technical Analysis on the Daily Timeframe

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In the daily timeframe, we see that although buyers have shown themselves aggressively after the price fall on 7 September, the continued ATOM price growth is difficult for them. The daily candle of 10 August closed at critically high volumes. The size of the candle suggests that sellers have actively slowed down the price growth with limit orders.

To continue the growth wave, buyers need to either increase trading volumes or allow ATOM price to correct to the $19-$21 range. In the daily timeframe, we see that this liquidity range is also a trend line, which buyers have been keeping since the end of July. The loss of this trend line will complete the local growth trend in the coin market and continue the correction. We should talk about a positive scenario in the ATOM market only after fixing the price above the range of $27-$32. In this case, critically, buyers will open the way for the price growth continuation to $55.

The ATOMBTC Price Is at a Potential Market Reversal

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Analyzing the price chart of ATOMBTC, we see that now buyers are trying for the third time to break the liquidity range of $0.000063-$0.000073. This range has been a support for sellers since January 2020. Therefore, breaking this range up will play a historical role in the ATOM market. Buying an ATOM in such an uncertain situation is the most dangerous, and it is worth following the breakdown of the critical range. Only after fixing above the range of $0.000063-$0.000073 we can think about ATOM cryptocurrency for investment.

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