Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be taken as funding recommendation
Of late, ATOM has reaped the advantages of a risk-on broader market. The altcoin registered a 30% soar during the last three days and eventually broke north of its down-channel – A setup that lasted for a number of weeks. Since hitting a 1-month excessive of $44, ATOM’s bullish momentum has cooled off because the RSI flashed overbought readings.
Its trajectory now depends upon near-term assist ranges that are geared toward thinning losses and triggering a rebound. On the time of writing, ATOM was buying and selling at $39.1, up by 10% during the last 24 hours.
ATOM 4-hour Chart
Supply: ATOM/USD, TradingView
ATOM’s down-channel appeared after an enormous rally came about on the finish of September. Unable to maintain good purchase volumes, ATOM’s worth eroded steadily – Establishing a close to 33% decline from the best to the bottom level inside the sample. Nonetheless, the narrative rapidly modified publish 12 October. Help ranges of $31.5 and $33.5 helped bulls collect numbers for a transfer above the higher trendline.
Now, based on the 4-hour Bollinger Bands, ATOM was overbought and must stabilize earlier than the subsequent swing. This was additionally backed by related readings on the RSI. Going ahead, the area between $38.6 and $36.6 can allow a bullish rebound and hold ATOM inside a bullish bias. The zone additionally bolstered the 20-SMA’s (pink) presence.
Nonetheless, count on further drawdown ought to ATOM weaken under this defensive useful resource.
In the meantime, the continuing retracement was supported by a declining RSI and MACD. Ideally, the RSI ought to discover assist at 50-45 contemplating ATOM was inside an uptrend. On the flip aspect, count on some deeper losses in case the RSI and MACD proceed their decline over the approaching periods.
Conclusion
Robust 24-hour buying and selling volumes will possible see ATOM resume its uptrend on the finish of its correctional part. These wishing to participate within the subsequent upcycle can lengthy ATOM between $38.6 and $36.6. Cease-losses could be set proper under the 20-SMA (pink) at $36.
