The cryptocurrency ATOM has experienced significant volatility amid growing concerns about the situation in the middle east.
Israel started a bombing campaign in Iran on Friday morning, spurring a market wide sell off.
After falling 9.25% from $4.43 to a low of $4.02, ATOM found critical support around the $4.04 level before stabilizing near $4.08.
While ATOM and other altcoins have faced pressure during this cycle, Bitcoin has positioned itself alongside gold as a potential safe haven, surging 54% over the past 12 months to reach a $2.08T market capitalization.
Technical analysis
- Significant selling pressure occurred between 19:00-00:00, with volume peaking at 2.8M during the 02:00 hour as price found support near $4.04.
- A recovery attempt emerged from the 03:00 hour, with price stabilizing around $4.08, forming a potential support zone between $4.04-$4.07 confirmed by above-average volume.
- ATOM broke through the $4.08 resistance level with substantial volume (37,524) at 13:31, followed by continued momentum pushing prices to $4.09.
- Trading volume peaked during the 14:00 candle (73,628), confirming strong buyer interest at these levels.
- A new support zone has established between $4.08-$4.09, suggesting the potential formation of a short-term bottom.