ATOM price is hovering near a crucial support zone following a series of lower momentum. A technical bounce back is expected with an upswing of nearly 47%. Investors are looking for a relief rally in the token after a prolonged downfall in the price.
- Atom price continues the downside momentum with modest losses.
- From the technical perspective, a jump toward $25.0 is on the cards as the formation of the bottoming pattern on the weekly chart.
- However, an acceptance below $17.0 will open the gates for further low levels.
ATOM price trades inflection point
ATOM price dropped 61 from the highs of $44.54 made in mid-January, to tag the swing lows of $17.34.This fall is the result of the ‘double top’ formation at the mentioned level. After retracing 35% in September, the ATOM price took support near the 50-day EMA (Exponential Moving Average) at $21.87. ATOM clocked gains of 25% but the bulls lack the conviction to carry forward the gains and dropped further lower to $16.59.
Currently, the ATOM price once again hovering near the reliable support placed at around $17.0. In addition to that, we expect a bullish formation, namely ‘inverted hammer’ on the weekly chart with a condition of a next green candlestick above $20.0.
If that happens, the investors would next to keep eye on the horizontal resistance zone near $25.0.
On the contrary, a fall below the session’s low would wash out the bulls’ hope of any gains. A downside target could be located near the lows visible in early August around $14.0.
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As of press time, ATOM/USD holds at $17.05, down 3.20% for the day.
Technical indicators:
RSI: The weekly relative strength index remains in the oversold zone. However, it religiously stuck below the average line making bulls nervous.
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