Key takeaways
- ATOM has moved up by less than 1% as downward momentum accelerates.
- The coin could soon drop below $4 if the bearish trend continues.
Crypto market remains unsettled
The cryptocurrency market has been highly volatile over the past 24 hours, largely driven by Wednesday’s FOMC meeting. The Federal Reserve 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 toward the $4.20 area. At the time of writing, ATOM is trading around $4.49 and risks falling below $4 if the downward pressure intensifies.
ATOM’s recent underperformance comes despite positive ecosystem developments within Cosmos. The network recently reached 100 live chains and is progressing on XRP integration through the Cosmos SDK and IBC.
With multiple support levels breaking and sellers still in control, the path of least resistance remains to the downside.
ATOM could drop below $4 as sellers stay in control
The ATOM/USD 4-hour chart remains bearish and intact, with sellers maintaining control. Technical indicators also point downward, signaling strong selling pressure on the token.
The RSI at 43 places ATOM in negative territory and suggests further losses are possible if momentum does not shift. MACD lines sitting in the bearish zone reinforce the current selling bias.
If current conditions persist, ATOM could revisit the $3.90 support level formed earlier this month. A prolonged downturn could push the token toward the $3.50 area, a level not seen since June.
That said, market conditions remain volatile and could deliver a short-term rebound. In a bullish scenario, ATOM could climb above Monday’s high near $4.88, but surpassing the weekly peak of $5.30 would likely require strength across the broader crypto market.