Falling wedge playing out

Updated

Since February a falling wedge has appeared in the ATOM price. It is contained inside a neutral wedge, so it could have been both. Since yesterday the falling wedge becomes more clear. Volume is also declining, which is why the falling wedge could be considered bullish.

ATOM moves with in an upward channel still, which is invalidated when the price goes below $10.18. So far it's fine.

RSI indicates a slight rise, while prices are falling on the daily chart. This could be considered a bullish divergence.

ATOM has a strong community, and recent developments (Neutron, Stride) is not priced in imho.

The current economic situation makes me nervous and ATOM is not having a lot of press coverage at the moment. For that reason I remain cautious and would expect a furth drop to $10.18 first before a recovery to $14 would be possible.

No financial advice.

Note

We actually reached ~$10.20 and today ATOM seems to move up. We just left the falling wedge to the upper side. So far, it does not mean anything. It's Sunday, and I will start with hoping once we receive $11.80 level. At this point, Monday can bring a correction. If this week does not correct to hard by Wednesday, we may see another leg up.

Note

Wednesday's correction is here: it could have been worse, but -2.3% is telling a story. I would expect more losses today. A relief could have come with the signing of the US debt agreement, but weak China economics and recent threats from Russia towards the UK give me little confidence for a leg up. Chart is still intact, but likeliness to go lower back to a $10.20 is higher than moving back up to $10.80, in my opinion.

Interesting fun fact, Atom behaves more than BTC than ETH recently.

Note

Thanks to Gary Gensler and the SEC, we broke the upwards channel recently
Let's hope the SEC will receive heavy backfire, which is imho the only option to get back into the channel. Some catalysts from the project would not hurt either.

dunsany

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.