4 min readWith renewed momentum sweeping across the crypto market, several altcoins are beginning to carve out promising technical setups. One of those is ATOM (ATOM/USD), which has recently broken above a key structure and could be setting up for further upside if current market conditions persist.
ATOM has successfully broken above the 4.66 level, a significant structure that had acted as resistance in recent months. Following this breakout, price is now testing the 200-day exponential moving average, which is acting as near-term resistance. At the same time, the 5.09 level, recently reclaimed, is holding as support, giving bulls a potential base for continuation.
A clean break and hold above the 200 EMA would likely bring the next minor resistance at 5.70 into focus. However, if this current breakout wave across the altcoin market evolves into a broader trend, the real area of interest sits higher. The high time frame resistance zone near 6.28 remains the more significant target for bulls to watch.
Looking at the ADX, the blue line at the top of the chart, we are now starting to see early signs of trend strength building. The ADX had been declining through much of the recent downtrend but is now beginning to turn up, suggesting that the recent breakout could be the beginning of a more sustained move.
In this kind of environment, altcoins like ATOM, which are showing relative strength and technical reclaim levels but haven’t yet reached their high time frame resistance, should stay firmly on the radar. There’s still potential room to the upside, especially if risk-on sentiment in crypto continues.
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