ATOM rebounds from 5% drop as buyer demand defends key support level
|The cryptocurrency market continues navigating choppy waters as tensions between U.S. President Donald Trump and Tesla CEO Elon Musk increase.
ATOM established crucial support around $4.25 after experiencing a 4.7% decline, with significant buying demand suggesting potential recovery.
This price action comes as major economies implement conflicting trade policies, creating ripple effects across financial markets worldwide.
Central banks' shifting monetary stance could provide breathing room for digital assets, though geopolitical tensions continue to exacerbate market uncertainty for both traditional and cryptocurrency investments.
Technical analysis
- Price formed a clear support zone around $4.25-$4.27, validated by high volume buying at the 20:00 timeframe, when volume spiked to 1.42M.
- Recovery pattern emerged in the final hour, with ATOM climbing from $4.295 to $4.314, representing a 0.45% gain.
- Price action formed a clear uptrend with higher lows and higher highs between 07:10 and 07:21, peaking at $4.338.
- Volume analysis reveals significant buying interest during the uptrend phase, particularly at 07:15 and 07:20, when volume exceeded 25,000 units.
- Final 15 minutes showed renewed bullish momentum with price establishing support at $4.309 and closing near the hourly high.
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