Real Madrid's performance is currently improving and I think in terms of percentage, Real Madrid's chances in the Champions League this season are increasing after previously they were doubted when they were down.
Real Madrid's performance does look a little better and they can beat Atalanta to improve their ranking but Real Madrid's current position cannot be said to be safe they still have to face 2 more matches to be able to advance to the next round if Real Madrid can win the 2 matches they still have a chance to rank in the top 8 but if one of the clubs in the top 8 currently such as Lille, Brest, Inter, Aston Villa, Arsenal and Leverkusen lose points in the next 2 matches.
Madrid has also just won the Intercontinental Cup and this is their first trophy this season and with this will make Real Madrid excited to win the next trophies.
Of course, their performance will improve because their players are getting fit. It's been a long time that Real Madrid have experienced such poor performance due to injury. Winning Atalanta gave them hope of qualifying to the next round and it will also motivate them to win the rest of their matches. It hasn't happened in history that Real Madrid, the title favorite will not qualify to the round of 16, and it will not happen this season.