This is a daily chart of the ATOM/USD perpetual futures contract on Binance. Here’s an analysis of the chart:

Descending Channel Breakout:

The price has been in a descending channel (marked by yellow trendlines) for several months.Recently, ATOM has broken out of this channel, signaling a shift in trend from bearish to bullish.

Support and Resistance Levels:

Support: Around $3.66 (blue line) represents the recent bottom and key support level.Resistance: The price is testing the $6.04 to $7.00 zone (yellow rectangle), which previously acted as a strong supply zone.

Volume:

There’s a significant spike in volume, which confirms strong buying interest after the breakout.

RSI Indicator:

The RSI (Relative Strength Index) is trending upward but nearing overbought levels, indicating momentum but also potential for a pullback.

Breakout Scenario:

If the price can break above the $7.00 resistance zone with strong volume, ATOM could target higher levels, such as $8.00 or $10.00.

Pullback Scenario:

If the price fails to clear $7.00, it could retrace to retest $5.57 or even the breakout level near $4.00. $ATOM $ETH $BTC
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