Cosmos (ATOM) Ranked 44th and Lost 3% in Intraday, Its Market Cap Slipped to $1.795 Billion

Despite the overall bearish trend going on from the second quarter, crypto comes in the top 50 global crypto assets.

ATOM price slipped further on Monday, continuing its bearish trend that began in the second quarter. However, despite the overall bear market, ATOM remained in the top 50 global crypto assets.

Its spot volume inflow increased by 14% for the current trend continuation, which is higher bearish interest. It also had a moderate liquidity present at 6.35%.

An increase in the derivatives trading activity of the Cosmos was registered over the last 24 hours, according to the derivatives research website.

The open interest for the Cosmos surged 3%, with OI’s reached at $70.96 Million. This was followed by a surge of 6% in its derivatives trading volume, which amounted to $112.90 Million.

Upon further examination, it was observed that the increased derivatives activity were for the current downward trend. It signified that the bearishness was on the rise, which was further confirmed by Intrady’s liquidation data.

Similarly, the derivatives liquidation chart of Cosmos exhibited an advance in the long liquidations over the last few weeks.

This led to a strong profit booking in longs in the asset, which led the price to certain lows over witnessed the daily chart. The long liquidation was higher at $678.99K, and the shorts were less at $964.57.

Cosmos (ATOM) Price Analysis: Bearish Trend Continues, But Key Support Holds Strong

The bearish downward trend began in March 2024. This happened after its price reached a swing high of $14.505, from an ascending wedge developed in the last quarter of 2023 and the first quarter of 2024.

Since that peak, the asset has been continuously declining. It most likely appeared as a breakdown of a bearish pattern, precisely the ascending wedge pattern. ATOM has experienced a sustained downtrend.

Again, this looks like the development of a falling wedge pattern on the daily chart. It appears as a bullish pattern under construction.

Since the bearishness appeared high and derivatives liquidation of longs was high, there has been a higher chance that the dip could increase towards making strong support from the wedge’s lower border.

In the case of further dip, the supports of $4 and $3.5 could play significant roles. Once breached, the downtrend could extend.

However, on the flip side, if it dips and takes humongous support followed by major bulls’ interest from the wedge’s lower border. The price propulsion could attain a breakout by completing the falling wedge pattern.

Therefore, in case of a rise, the interruptions that could threaten its scent would be present at $6 and $8, respectively.

Corresponding to ATOM’s daily chart price, the indicators also depict a bearish trend. However, a minor change has been observed that resembles some buying input in the asset. As RSI surged above 14-SMA, bears still reigned supreme as MACD showed bears cross.

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