Key Points:
- ATOM has exhibited bullish momentum, rising 5% before hitting a significant bearish reversal known as the head-and-shoulders pattern in recent trades.
- The support level of $4.44 was repeatedly challenged but could not be sustained, hinting at possible further declines if bearish trends develop.
Market Updates:
Geopolitical tensions and dynamic trade policies are influencing cryptocurrency markets as the prominent stablecoin provider Circle ambitiously aims for its NYSE listing. The firm behind USDC has raised both its share count and price range, reflecting robust institutional confidence in the stablecoin market, even amid regulatory uncertainties.
Additionally, trade associations have released a united message urging lawmakers to focus on establishing detailed oversight of stablecoins instead of getting distracted by unrelated matters.
ATOM’s performance has been mixed in response to these developments, with a pronounced 5% increase preceding the emergence of a bearish head-and-shoulders pattern.
Technical Analysis Insights:
- The ATOM-USD pair demonstrated solid bullish momentum over a 24-hour span, climbing from $4.307 to $4.532, equating to a 5.22% increase.
- Price behavior illustrated a clear upward trend with higher lows and higher highs during the timeframe of 20:00-01:00, surpassing crucial resistance at $4.42 with above-average trading volume (689K-1055K).
- Strong support was established at the $4.43-$4.44 range post-breakout.
- Unfortunately, within the last hour, the ATOM-USD pair has shaped a head-and-shoulders pattern characterized by decreasing volume on rebounds—indicating a softening bullish trend.
- The $4.44 support level faced repeated tests but eventually fell, pointing to potential further downside should the bearish momentum persist.
