ATOM possible breakdown**Weekly Perspective:**
In the weekly time frame, ATOM is trading within a downward parallel channel. The upper line of the channel represents a strong resistance, while the lower line serves as a robust support line. Atom is forming a Lower High and Lower Low structural pattern, indicative of a bearish trend. One notable observation this week is the breach of one of ATOM's strongest support lines. A trendline drawn between the COVID-19 lows and the lows of June 2022 used to provide substantial support for ATOM. Even during the BTC drop from $30,000 to $25,000, this trendline offered support and boosted ATOM's price. However, this trendline was broken during the previous week's downturn, and ATOM is now trading below it, suggesting a potential further decline in the coming days. ATOM's ability to maintain the trendline support will determine its performance; otherwise, a significant price correction seems likely. The weekly RSI is at 33, indicating the possibility of further oversold conditions. Additionally, a bearish MACD crossover has been present since the third week of April.
In the weekly timeframe, there is also a double top pattern in ATOM, and the neckline of this pattern has been breached. The double top pattern itself is bearish, and it could contribute to future price declines for the coin.
Looking at the daily timeframe, another downward parallel channel is evident in ATOM's price movement. The upper channel boundary has led to price decreases four times, while the lower boundary has caused two price increases. Even within this channel, ATOM is adhering to the Lower High and Lower Low pattern, underscoring the continued effects of this pattern on the falling price. On the daily chart, the RSI stands at 31, and the MACD is in negative territory.
ATOM's last stronghold lies within the horizontal support range of $7.13 to $7.5. A breach below $7 would trigger a sell-off, potentially causing the coin's price to drop further. Beyond this level, the next substantial support for ATOM is projected around $5.6 to $5.9. Therefore, falling below $7 could lead to a price range of $5.6 to $5.9 for ATOM.
Market sentiment is set to play a pivotal role in ATOM's survival and its ability to maintain crucial support levels. Unfortunately, sentiments for the upcoming week do not appear favorable. BTC continues to decline, with expectations of touching $25,000 to $25,200 to establish a solid support within this range. Furthermore, if sell-offs are observed in the S&P 500 and NASDAQ, it could translate to a downward trend in the crypto market as well.
Click on the link to understand market sentiments: cryptonewsbytes.com
Are you prepared for this update of AVAX: cryptonewsbytes.com
What can you expect for Litecoin, explained: cryptonewsbytes.com
NASDAQ and BTC, what will happen next: cryptonewsbytes.com
