ATOM Price Revisits Nine-Month Low; Hold Or Exit?

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.

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.

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.