ATOM price has been facing downward pressure for the past few months, struggling to gain positive momentum. It has corrected by over 50% and is currently trading close to its 52-week low of $3.50. While Bitcoin and the general crypto market have seen mild gains, ATOM price has continued to bleed. The bear army has persisted in making short positions, and signs of distribution from the top have been observed on the chart.
However, there is potential for a bullish reversal pattern on the daily chart. If ATOM price can break and close above the $5 mark, it could validate buying strength and trigger a trend reversal. At the time of writing, ATOM was trading at $4.16 with a slight intraday rise. Its market cap has increased to $1.37 billion, positioning it 47th among the top 100 crypto altcoins.
There is a resistance zone at $5 that ATOM price has been trading close to, with steady selling pressure observed in recent weeks. The trend remains bearish, with bounces not sustained at the highs. The $4 mark is the immediate support zone, and slipping below it could send ATOM price towards its 52-week low region.
Despite the ongoing downtrend, technical indicators point towards a potential trend reversal. The Chaikin Money Flow (CMF) reading shows rising capital inflows in the market, while the Awesome Oscillator (AO) value crossing the zero line indicates bullish control.
In the futures market, the OI-weighted funding rate remains positive, indicating a bullish sentiment among investors. Open Interest has also increased, representing long buildup activity. The immediate support zones for ATOM price are $4 and $3.80, while the immediate resistance levels are around $4.70 and $5.
Overall, while ATOM price is currently struggling near $4, there is a possibility of a trend reversal if it can break above the $5 mark. Technical indicators and futures market data suggest a potential upward move in the coming sessions. However, the bearish trend and the resistance levels should be closely monitored.