Yigit Taha OZTURK 
ATOM, one of the popular layer-1 blockchains, is back on investors’ watchlists. Especially on the 4-hour chart, the recent close above the descending trendline has provided a short-term optimistic outlook. However, the price has currently pulled back after facing rejection from the bearish FVG (Fair Value Gap) zone. This indicates that bears are still active in the market.
What Are the Target Zones?
If ATOM finds strong support in its current region and manages to break through the FVG zone, a sharp upside move is expected. In this scenario, the price has the potential to rise towards the $4.95 level in the short term. This resistance zone is a significant target for short-term traders.
Why Is the FVG Zone Important?
FVG (Fair Value Gap) zones represent gaps in the price where the market previously moved quickly without fully filling the liquidity. Currently, ATOM has faced rejection from this zone, resulting in renewed selling pressure. Breaking through the FVG zone would be a strong signal indicating that the market momentum has shifted in favor of the bulls.
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On the other hand, if the price re-enters the descending trendline, the $4.50 level will act as the first strong support zone. If this level is lost, traders should be cautious about the potential for a deeper pullback.
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