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Bright rays of the sun after a long cold. It is the best phenomenon that inspires new accomplishments! This is exactly the phenomenon that can be observed in the ATOM market if we analyze the latest events in the weekly timeframe.
https://www.tradingview.com/x/0VV1Q3Xk/
ATOM price movements from January 2020 take place in the orange growth channel. In the period from February to May 2021, buyers tried to accelerate the growth trend and broke the upper trend line up. However, 3-month the ATOM price tried to fix over the upper orange line but unsuccessfully and the market felt a powerful blow.
The price lowering by 73% allowed sellers to test the bottom line of the global growth channel. Though, there was no talk of breaking this downward trend line. After three attempts by sellers to update local highs in the ATOM market, the first two were successful. But as we can see in the chart, after the first attempt of sellers, the next local low was updated on lower volumes. The last attempt ended with a slight test in the range of $8.5-9.5. Thus, sellers showed complete exhaustion in this price range. The local initiative, which is now owned by buyers, will be able to help implement the test of $17-18. ATOM market control by buyers will continue as long as the range of $8.5-9.5 remains under their control.
The Critical Point in the ATOM Market Is the Range of $8.5-9.5
In the history of the chart, we see that since August 2020, buyers have twice had problems with this range. Only in January 2021, thanks to abnormally high volumes, buyers managed to break this range up and get a new wave of growth. Thus, fixing the ATOM price on a weekly timeframe above $8.5-9.5, in the long run, will give investors a much stronger growth wave than in the range of $17-18. However, we will be able to talk about clear targets only after fixing the price above $17-18.
Yesterday’s break of the upper limit of consolidation in the BTC market drew all the attention of cryptocurrency investors to Bitcoin. So, investors began to sell ATOM in pairs to Bitcoin.
ATOMBTC Technical Analysis
https://www.tradingview.com/x/mXoFxpuG/
However, the confident BTC price fixing above $40,500 will also provoke a new wave of altcoin growth. Looking at the ATOMBTC chart, we see that the price stops near the important range of 0.00026-0.0003. From this range, ATOM grew by 180% in January 2021. Therefore, closing the weekly candle above this range will only reinforce our main scenario of a medium-term price reversal in the ATOM market and the beginning of new growth.