ATOM Defends Key $4.25 Level as Bulls Absorb Selling, Short-Term Trend Attempts a Reversal
After a near 5% drawdown early Thursday, Cosmos’ ATOM token bounced sharply from the $4.25 region — a critical support zone that has acted as a springboard in recent sessions. The intraday reversal was marked by a spike in volume and a shift in structure, suggesting a potential short-term bottom may be forming.
Here’s What Happened:
- The Dip: ATOM fell from $4.50 to a low of $4.27, aligning with broader crypto market weakness as risk-off sentiment spilled into digital assets.
- Buyer Reaction: At precisely 20:00 UTC, volume surged to 1.42M as buy-side pressure overwhelmed sellers, establishing $4.25–$4.27 as a demand zone.
- Mini Trend Flip: A quick sequence of higher highs and higher lows began forming around 07:10 UTC, with price climbing back to $4.33 before settling near $4.31.
- Volume Confirms: Candle closes at 07:15 and 07:20 came with strong follow-through and volume >25K — a classic reversal signal in low-timeframe setups.
- Support Reinforced: ATOM held $4.309 during the final hourly session, tightening its base and ending the day with a bullish lean.
The Setup
ATOM’s ability to bounce cleanly off $4.25 and reclaim $4.30 suggests bulls are defending aggressively — a potential accumulation zone forming beneath everyone’s radar. If momentum sustains and macro pressure eases, $4.40–$4.50 could be next.
For short-term traders: keep an eye on $4.34 for continuation. A clean break above may trigger upside momentum.
For now, the trend is fragile — but alive.
