ATOM has hit our target near 3382. That level is the 23% retracement of the recent down move. If you assume ATOM is still in a bear market, then today's 11% move should complete the corrective rally. That would leave ATOM at the mercy of any new up move in BTC...which we believe is coming.

The next level to watch is near 4138. If ATOM manages to rally past that level, a confirmed bottom could be in. In Elliot Wave speak, a rally past 4138 would take ATOM past a "previous 4th." In English, if ATOM passed 4138 it would move through the area where the potential final leg of the down move began. That could be constructive.

Bottom Line: Chasing ATOM up 11% with the coin at resistance doesn't make much sense. If ATOM blows through 4138, jump on. Any such move could imply that a broader crypto market rally has begun. Conversely, a failure at 3382 could signal the start of tax loss selling in the alt space.

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