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Peter Oleshchuk
Feb 9, 2022
by Peter Oleshchuk

ATOM Technical Analysis: Below $27 A Catastrophe Will Begin

ATOM

Table of contents

  1. Technical Analysis Of ATOM On The Daily Timeframe
  2. The ATOMBTC Price Hints At Consolidation In The Global Triangle
The rather weak correction of the ATOM price compared to the collapse of the entire cryptocurrency market gave hope. ATOM buyers missed their chance for a rapid growth wave along with the BTC price. Thus, from the previous article, the ATOM price remained at the same place. Buyers have only shown the unwillingness to form a new growth wave in the range of $27. The last weekly candle was able to cover only half of the neighbor's falling candle. In addition, trading volumes last week were quite low. If buyers had a lot of interest in the $27 range, we would have seen either the closing of the last weekly candle at least in the $35 range or trading activity this week. The fact of the passivity of buyers hints at the incompleteness of a fall wave and the probable breaking of a local trend line downwards. In this case, you should expect a test in the range of $18.

ATOM

In the weekly chart, we see that in the $18 price range, ATOM will test its global trend line of the growth channel. This orange channel of growth has been organized by buyers since July 2020. If most cryptocurrencies have successfully tested their similar trend lines, ATOM has kept it for dessert. Given the fact that the BTC price correction from $46,000 has started, the probability of other altcoins falling is quite high. Therefore, by the end of February, the probability of a new fall wave is quite high.

Technical Analysis Of ATOM On The Daily Timeframe

ATOM

However, is there a chance to keep the ATOM price from a new fall wave? Analyzing the ATOM price movement on the daily timeframe, we do not yet see strong aggression from sellers. Thus, if the ATOM price still can not pass the mark of $27, the rebound from the previous fall wave from November will continue. Given the passivity of buyers, we do not expect the ATOM price to go above $36. However, such a scenario is possible if the BTC price is kept in the range of $40,500-$42,000.

If you pay attention to the movement of the ATOM price from 24 September, it was at the $36 mark that sellers were able to stop the rebound. Though, pay attention to what the trading volumes were at the end of January and what they are now. Therefore, if the situation in the ATOM market does not change, then at best, buyers will test again for the strength of $36 over the next two weeks.

The ATOMBTC Price Hints At Consolidation In The Global Triangle

TradingView Chart

The weekly timeframe of the ATOMBTC price chart shows that this is not a bad situation. Buyers managed to organize a global triangle with a flat top at local highs. This type of consolidation is mostly shot up. However, the formation of a local fall wave within the consolidation range is not complete. And the probability of ATOMBTC prices falling by another 15% is quite high. The critical point for this scenario will be 0.00061. By keeping it, buyers will prove their strength and desire to continue the global growth trend with the first target of 0.0018.

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ATOM Technical Analysis: Below $27 A Catastrophe Will Begin
Peter Oleshchuk
Peter came to know about cryptocurrencies in 2017 and was instantly enamoured by their massive potential. As he gained more insights about the crypto market, he began writing about it. Peter's daily activity is analysis and forecasting, studying the price movements probabilities, and trying to understand the market inside. He is glad to witness such a phenomenon as cryptocurrency and decentralized finance, and to participate in it.

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