ATOM - 12h - How much can you grow?

Today we will talk about ATOM, one of the most stable cryptocurrencies in the long term. Will the ATOM price be able to gain a foothold above the previous all-time high? What are the prospects for continued growth from current prices? Why is there a very high chance of a collapse of the ATOM market now? We will talk about all this in this idea.

We'll start with the weekly ATOM chart.

On it, you can see a clear growth trend that buyers organized from March 20, 2020. Pay attention to the local highs of this growth channel. Of course, the way the ATOM market reversed was different. When the cryptocurrency market was weaker, the reversal was sharp . In the case of insane market growth in early 2021, the market reversal lasted a little longer and was implemented through an ATOM sell-off in consolidation at the highs. However, the common feature of each ATOM reversal is the highest trading volumes at the local highs.

If you pay attention to the current weekly candles, you can see the largest trading volumes in the history of ATOM. At the same time, the price renewed its maximum and stopped.

If you go down to a smaller timeframe, you can see a local pivot point for buyers, from which you can plan to continue the local growth wave:

We have highlighted the $32.57 mark on the chart. Please note that this mark was first broken up by buyers on large volumes. Now all attempts of sellers to regain this mark under their control end in false breakouts.

Therefore, for the local continuation of the growth of the ATOM price without stopping in time, buyers should hold this mark in the event of a potential downward wave. In this case, after a short consolidation, we will expect the ATOM to continue to grow with a target of $59.

If the level of $32.57 is broken downwards, the last chance of buyers to continue growth will be in the range of $27-28. However, in this case, buyers will show weakness, allowing a deep correction at the highs with large volumes. In this case, we would wait for a local price bounce upwards and close our positions.

The fact that a reversal process may begin on the ATOM market is also evidenced by the chart of the ATOMBTC pair.

Please note that the breakout of the black channel, in which the ATOMBTC price was trading from September 2019, took place on large volumes. However, it’s not easy for buyers to keep pushing the price up. In this case, we expect a minimum correction in the range of 0.000667-0.0007. In this case, it will be possible to talk about the acceleration of the trend. In the meantime, it is worth letting ATOM calm down a little and feel the foundation under your feet.

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