Stocks in ATOM soar by 4% due to institutional investment, but then fall back during late trading hours.
The cryptocurrency market has been buzzing with activity, and Cosmos' native token, ATOM, has been no exception. Following the listing of dYdX on Coinbase, both tokens saw a surge in price, with DYDX rising by approximately 3.7% and ATOM increasing by around 3.4%.
On August 8, ATOM gained 4% to reach $4.55, a significant increase attributed to institutional buying and Coinbase's addition of native dYdX support. However, the price reversed sharply in the final hour of trading, sliding from $4.60 to $4.56, marking a fragile short-term momentum.
The $4.58-$4.60 range has emerged as overhead resistance for ATOM, a recent development following the break of $4.58 as support. Conversely, $4.55 is now viewed as key support for the token.
The exceptional 2.19 million-unit volume, a significant factor in the price increase, decreased to zero by the close of trading on Aug. 8, indicating a collapse in volume towards the end of the day.
The price action around August 8 and onwards has been influenced by the dYdX migration to an independent Cosmos-based blockchain, Coinbase’s increased accessibility to DYDX, and the positive impact on decentralized finance (DeFi) projects within Cosmos. These developments have strengthened the Cosmos ecosystem's market presence and boosted institutional interest.
Technical indicators show a mix of neutral RSI and some bullish momentum on MACD for ATOM, reflecting this accumulation phase with cautious optimism among traders.
As we look towards the future, strategists are looking towards potential upside momentum for ATOM, possibly reaching $5.48 later in 2025 as institutional adoption grows. The market trend for ATOM now appears as accumulation within a defined range, supported by ecosystem developments and poised for a potential upward breakout if institutional buying persists.
- The listing of dYdX on Coinbase and the added support for native dYdX have boosted institutional interest in the Cosmos ecosystem, potentially influencing the significant increase in ATOM's price on August 8.
- As institutional adoption grows and the Cosmos ecosystem gains market presence, strategists are looking towards potential upside momentum for ATOM, with a forecast of the token reaching $5.48 later in 2025 within the context of investing in decentralized finance (DeFi) projects.
