The cryptocurrency market is experiencing a sharp decline due to global economic instability. Bitcoin and Ethereum are losing value, while ATOM may show positive trends.
Overall Market Drop
The cryptocurrency market has taken a hit, going through one of the sharpest sell-offs of 2025. Bitcoin has dropped by 8%, while Ethereum lost over 14% in 24 hours. This decline is driven by uncertainty on the global stage, including a tariff war initiated by U.S. President Donald Trump against 185 nations.
Comparison of ATOM with Solana
However, amidst the overall decline, there is emerging potential for ATOM, which is forming a classic inverse head and shoulders pattern. This pattern is similar to what Solana formed in late 2024 before its significant rally. ATOM is currently facing resistance around the $5 mark, testing its 50-day moving average. If it breaks this resistance, it could open the path for further growth.
Prospects for ATOM
While macroeconomic factors remain challenging, technical setups can often preempt sentiment shifts. If ATOM breaks through the neckline resistance, this could serve as a signal for a potential recovery move, similar to what was observed with Solana last year.
The cryptocurrency market is facing significant hardships; however, ATOM may stand out due to its chart structure resembling Solana. The coming days will be critical in determining the fate of this asset.
