ATOM Crypto Surges 6% as it Breaks Descending Trendline

ATOM crypto experienced a significant surge, rising by 6% in a single day. This upward movement was marked by a break in the descending trendline visible on its daily chart, indicating a potential shift in market dynamics. The price chart's reaction at the $5 zone is crucial as it could determine the cryptocurrency's ability to continue its upward trend.

If the bullish momentum sustains its current pace, ATOM has the potential to continue trending higher, as it has done over the past two days. The cryptocurrency's price came dangerously close to the $5 resistance level, which is essential to break for a bullish confirmation. Exceeding $5 and establishing a long-term position above current levels could provide the potential for a rally, reaching new resistance barriers. However, a failure to break and hold prices above $5 could render the bullish setup ineffective, resulting in price rejection and triggering a market decline. A price movement to the $4.30 level may signal ATOM’s weakness, potentially triggering lower support areas near $4.

The MACD indicator displayed a weak bullish orientation from its histogram, which was slightly bearish from bullish. The proximity of the MACD to its signal lines indicated a possibility of market stabilization before emerging with a distinct trend pattern. When ATOM exceeded the descending trendline, it showed an evolving market momentum. Price movement after the current juncture could depend on the behavior of Cosmos, as it trades between significant levels at $4.30 and $5.

More analysis showed the heatmap from Binance revealed a high concentration at the $4.87 level, accompanied by a liquidation leverage of $233.23K. These zones of high concentration of liquidation activities signified an important area of interest. The daily gains created larger liquidations in the regions around $4.87 and $5, suggesting price resistance possibilities. Subsequently, long liquidations zones formed at $4.68 and $4.57, prompting key support levels. Long liquidations would likely occur if ATOM failed to maintain positions above these resistance levels, which could result in heightened market fluctuations. Alternatively, higher prices would see more short positions flushed.

ATOM needs to establish itself at $4.87 and $5 to determine whether it could have an uptrend. A price rejection near $5 could produce a correction, yet a successful break through this level could signal further upward price movement. The surge in some of the exchange’s asset intake showed signs that ATOM could continue increasing in value. If the platforms kept draining assets, it could trigger momentary downward pressure on ATOM and other tokens.