ATOM Technical Analysis: ATOM Prepares Launch To $15

Key technical points:

Past Performance of ATOM

ATOM prices take a break from the downtrend, which we predicted in our last article, to restart an upside reversal as the market shows signs of bullish recovery. The turnaround started from the depth of $9.5, undermined the fakeout of $10, and started an uptrend with a solid support trendline in the 4-hour chart. However, the dynamic resistance from the 50 EMA keeps the bullish growth in check. 

Source-Tradingview

ATOM Technical Analysis 

ATOM price action formed a short resistance level at $12.38 due to the rejection at the 50 EMA but found support at the ascending trendline. The bullish reversal from the trendline forms a rounding bottom pattern with a neckline at $11.50.

The crucial EMAs maintain a downtrend, with the recent 50 EMA providing constant dynamic resistance to maintain the downtrend. However, the EMA breakout will lead to a bullish rally close to $15.

The RSI indicator surpasses the halfway line with the 14-day SMA providing dynamic support and helping maintain the uptrend. This represents a remarkable increase in buying pressure and increases the chances of EMA breakout.

The MACD indicator shows an increase in the fast and slow line resulting in a merger that teases a bullish crossover. That is why traders can find a rise in bullish histograms with the rounding bottom breakout.

In short, the ATOM technical analysis projects a high chance of an uptrend above the 50 EMA.

Upcoming Trend

If the uptrend manages a bullish breakout of the rounding bottom pattern and the 50 EMA, it will unleash a huge trend momentum resulting in a price jump to $15. However, a reversal to the support trendline will increase the downfall possibility to $9.5

Support Levels: $10 and $9.5

Resistance Levels: $12.38 and $15