Cryptocurrency markets remain in a lull on Wednesday as the majority of assets continue to trade within a tight range.
Cosmos’ ATOM token is no exception, it is currently trading around $4.00 and looks poised to make a continued move to the upside.
ATOM’s V-shaped recovery pattern formed during the 24-hour period from 1 July 15:00 to 2 July 14:00 suggests interest remains strong despite broader uncertainties affecting traditional markets.
Technical analysis
- The price action formed a clear V-shaped recovery pattern, with strong volume support emerging at the $3.91 level during the 2 July 01:00 session, where buying pressure exceeded the 24-hour volume average of 425,000 units.
- The overall range of $0.13 (3.24%) indicates moderate volatility, with price establishing a new resistance zone around $4.04, confirmed by multiple tests during the 11:00 and 13:00 sessions on 2 July, suggesting potential for continued upward momentum if this level is breached.
- During the 60-minute period from 2 July 13:06 to 14:05, ATOM-USD displayed a bullish trajectory, rising from $4.02 to $4.03, representing a 0.32% gain.
- The price action formed a cup-like pattern with a notable dip to $4.01 around 13:24 before staging a recovery.
- Volume significantly increased in the final minutes of the session, with particularly strong buying pressure emerging at 13:58-13:59 (33,000+ units combined), establishing a new support level at $4.02.
- The price successfully broke through the $4.03 resistance in the final minutes, with three consecutive higher highs from 14:03 to 14:05, suggesting potential continuation of the upward momentum.