Key takeaways
- ATOM is up by less than 1% as the bearish momentum accelerates.
- The coin could drop below $4 soon if the bearish trend continues.
Crypto Market Remains Volatile
The cryptocurrency market has been extremely volatile over the last 24 hours, primarily fueled by the FOMC meeting on Wednesday. The Fed kept its interest rate unchanged, causing a widespread dip in the crypto market.
The news saw ATOM, the native coin of the Cosmos blockchain, temporarily decline to the $4.2 mark. At press time, the price of ATOM stands at $4.49 and risks dropping $4 if the bearish trend grows stronger.
ATOM’s recent poor performance comes despite positive ecosystem developments within the Cosmos ecosystem. Cosmos recently reached 100 live chains and is progressing XRP integration via the Cosmos SDK and IBC.
With multiple supports breaking and sellers firmly in control, the path of least resistance remains downward.
ATOM could drop below $4 soon as sellers remain in control
The ATOM/USD 4-hour chart remains bearish and efficient as sellers remain in control. The technical indicators are also flashing bearish, suggesting a heavy selling pressure on the cryptocurrency.
The RSI of 43 shows that ATOM is within the negative range and could record further losses if the momentum remains unchanged. The MACD lines are also within the bearish zone, indicating selling pressure.
If the market conditions persist, ATOM could drop to the $3.9 support level formed earlier this month. An extended bearish run would see ATOM hit the $3.5 level for the first time since June.
However, market conditions remain volatile and could see ATOM rally higher in the near term. If the market conditions turn bullish, ATOM could surge above Monday’s high of $4.88. However, it would need the help of the broader crypto market to surge above the weekly high of $5.3.
