ATOM Price Rises on Institutional Demand Before Reversal
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Cosmos token breaks through resistance on strong volume, but late selling forms new barrier
The price of Cosmos (ATOM) climbed nearly 4% on Friday, briefly breaking above a key resistance level at $4.60 on the back of heavy institutional buying. The rally followed news of expanded network support on a major exchange, sparking optimism among traders. However, a late-session reversal erased a portion of those gains, creating a fresh resistance zone just below $4.80.
Strong Start Meets Selling Pressure
On the 4-hour chart, ATOM surged from the $4.05–$4.15 support zone (green area) with strong momentum, propelled by above-average trading volume. The breakout lifted the token past its short-term ceiling, touching highs near $4.78 before sellers stepped in. The rejection has now established $4.75–$4.80 as a critical barrier for the next upside push.
Technical analyst Marcus L. commented that the rally showed signs of institutional accumulation before being met with automated sell programs:
“The move was driven by large block orders, which often point to institutional positioning. But the quick reversal suggests profit-taking from short-term traders, as well as algorithmic selling near the psychological $4.80 mark.”
Earlier this month, ATOM broke out of an ascending channel pattern that had supported a rally to highs above $5.60 in July. That run ended with a sharp correction, sending prices back toward the $4.00 level. The current rebound signals renewed demand but also highlights fragile market sentiment.
For short-term traders, maintaining price action above $4.60 is key to keeping bullish momentum alive. A sustained break above resistance would target $5.00–$5.20, while further rejection may shift focus back to the $4.15 support.
With institutional interest evident but selling pressure persistent, ATOM’s next move will likely define its August trading range.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
