The Key Takeaways
ATOM’s current pricing outlook is uncertain.
ATOM’s trend was to stabilize above $3 after nearly crashing down to zero. This aligned with the overall market.
Price bounce-back to prior levels
ATOM’s liquidity was around its previous levels, which led traders to believe that the altcoin would return.
Cosmos Hub [ATOM] was ranging around the $4 zone when the entire crypto market crashed.
Altcoins have been experiencing a downtrend for a full year since their peak of $10. ATOM, which was affected by a larger market crash at the time this article was written, remained roughly down 19% in the same day.
ATOM’s prices declined due to a number of factors, including the trade war.
What caused ATOM’s prices to drop so low?
ATOM Futures Contracts are currently trading for $0.
The Fear and Greed Index was 35 when the press went to print, showing fear.
Source: X
Some CT users ridiculed the altcoin’s price decline, further undermining confidence that it would bounce back. Deandree wrote,
“Oh look, $ATOM finally found the true fair value, markets really are efficient after all.”
The fragmentation of the ecosystem also played a part, with new forks such as the Cosmos AtomeOne token (ATONE), diverting liquidity from the original coin.
This decline was exacerbated by the reduction of staking reward, from 20 % in early 2020 to 11.84 %.
Analysis and forecasting of prices
ATOM’s charts showed that the lowest levels were around $4. RSI’s value reading at the time of publication, 32, supported this view.
Reclaiming the $3.60 broken level may be an indication of a rise to $4 and the trading levels prior to the crash.
Capital inflow was evident in the rapid rise of the price above $3. Money Flow Index was at 61 which indicates capital inflow.
TradingView
It could be the opposite, particularly now that traders have doubts about the real value of altcoins. For confidence to be restored, it was necessary to return to the earlier practices of capitalization and to invest massive amounts of capital.
Liquidation levels suggest…
The heatmap for liquidation on the daily graph showed that traders still bet on a slight drop under $2. A liquidation leverage in ATOM of $3,000,000 was seen at $2.78.
TradingView
The clusters were around the previous price of $4. These levels would be the targets if the ATOM price rose along with other crypto markets.
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Source: ambcrypto.com
