Excuse me, but could you please clarify your question? Are you referring to the mythical sea monster known as the Kraken, and are you asking if it is believed to reside in the legendary lost city of Atlantis? If so, it's important to note that both the Kraken and Atlantis are products of folklore and mythology, and there is no scientific evidence to suggest that either of these entities actually exist. Therefore, the question of whether the Kraken resides in Atlantis is purely speculative and based on ancient legends and stories.