By Nathan Ferguson
The previous week saw ATOM breaching its support levels, favoring downward price actions. The alternative token lost approximately 15% from the $13 area to the new bottom range near $20. While publishing this content, Cosmos traded at $20.17, losing 4.67% within the previous 24 hours.
ATOM hit its current low of the year on Tuesday as the alt explored its lowest value since September 2021. Furthermore, Cosmos stretched the downward move to nearly 40% from the four-week peak at $33.29, recorded on April 3.
Tuesday’s trading sessions saw the Relative Strength index briefly dipping into the oversold territory amid further price declines. Massive outflows (as displayed by the MFI) indicate the bearishness that dominated within the past four weeks. However, the indicator shows accumulation signals around the bottom range at this publication. Also, the DMI highlighted the massive bearish bias, though the inversion in its –DI shows bears could be losing their strength.
On-Chain Metrics Favor Bullishness
Cosmos’ Binance derivatives financing rate has displayed a lucrative recovery towards a 0.01% rate as the price touches its bottom range. That can demonstrate signals of surged interest by derivatives investors, with bullish reversal expectations. That shows they are betting while waiting for upside actions.
Santiment’s data show Cosmos’ developer activity recorded a considerable upsurge within the previous seven days. It hovers at the highest level as the price explores its lowest range.
The developer activity matches the latest report about IBC-Go (Inter-Blockchain Communication Protocol. The announcement declared that Composable Finance received funding from ICF (Interchain Foundation) to advance IBC-Go.
The grant will fund the creation of an update that allows communication between the Cosmos network and Cauntauri Bridge. The announcement emphasizes an optimistic development for ATOM. And that could contribute to the altcoin’s potential value with time. Nevertheless, ATOM may receive a boost from accumulation amid dip buying at current lower prices.
Nevertheless, ATOM will rely on broad market sentiment for its directional bias. For now, the crypto space sees further weakness as the global market cap of all crypto tokens dropped to $1.7 trillion, following a 2.12% 24hr decline. Such developments can see Cosmos deteriorating further.