Key takeaways
- ATOM is down by less than 1% as bearish momentum accelerates.
- The coin could soon drop below $4 if the bearish trend continues.
Crypto market remains volatile
The cryptocurrency market has been highly volatile over the past 24 hours, largely driven by the FOMC meeting on Wednesday. The Fed held interest rates steady, triggering a broad sell-off across crypto markets.
That news briefly pushed ATOM, the native token of the Cosmos blockchain, down to the $4.20 area. At the time of writing, ATOM is trading at $4.49 and faces the risk of slipping below $4 if the bearish trend strengthens.
ATOM’s recent weakness comes despite positive ecosystem developments for Cosmos. The network recently reached 100 live chains and is working on XRP integration via the Cosmos SDK and IBC.
With multiple support levels weakening and sellers firmly in control, the path of least resistance remains to the downside.
ATOM could drop below $4 soon as sellers remain in control
The ATOM/USD 4-hour chart remains bearish and actionable as sellers maintain control. Technical indicators also flash bearish signals, pointing to heavy selling pressure on the token.
The RSI at 43 places ATOM in negative territory and suggests further losses are possible if momentum does not change. MACD lines are likewise in the bearish zone, reinforcing signs of selling pressure.
If current market conditions persist, ATOM could fall to the $3.90 support level formed earlier this month. A prolonged bearish run could push the token toward $3.50, a level not seen since June.
That said, market conditions remain volatile and could produce short-term rebounds. If sentiment turns bullish, ATOM could recapture Monday’s high near $4.88. To exceed the weekly high of $5.30, however, it will need broader market strength to support the rally.