Atwal, playing in only his fourth Nationwide event of the year, signed off with a total of even-par 144.
The Orlando-based golfer has lost his PGA card and needs to be inside the top-25 of the Nationwide Money List by the end of this season to reclaim his playing rights in the elite field.
Atwal was off to a steady start as he parred the first four holes before stroking in birdies on the fifth and seventh in a blemish-free front-nine to make the turn two-under.
However, Atwal's fortunes took a tumble in the back-nine and he dropped four consecutive bogeys from the 12th to 15th hole.
Another dropped shot on the 17th completely put paid to his chances before he managed a consolation birdie on the 18th hole.
American Kyle Thompson grabbed the sole lead with a second-round 67 which took his overall score to 14-under 130.