ATOM, the native token of the blockchain ecosystem Cosmos, has posted significant gains, potentially signaling a reversal of its prolonged bearish trend. The token’s price rose 5.25% in 24 hours, breaking out of a narrow trading range. Concurrently, its trading volume surged 13.22%, indicating heightened market interest. Analysis suggests that if ATOM closes above the $1.77 level, a 15% rally toward $1.98 could be possible, with further upside potential noted by on-chain and derivatives data.
The native token of the **Cosmos** ecosystem, ATOM, has broken out of a narrow range with a 5.25% price increase over 24 hours. This move suggests a potential end to the bearish trend it has followed since mid-February 2025.
Trading volume for the token surged notably by 13.22% over the same period. This increase suggests greater market participant interest in ATOM’s prevailing trend.
Following its recent gains, ATOM officially outperformed major cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana. On the daily chart, the near-term bias appeared bullish after it broke out of a falling wedge pattern.
The price still needs to close a daily candle above the pattern to confirm the breakout. Otherwise, it may turn out to be a fakeout.
If ATOM closes its daily candle above the $1.77-level, it could see a price jump of over 15% and may reach the next resistance at $1.98. A breakout above this resistance could trigger another 20% rally, potentially pushing the price towards the $2.40-level.
At the time of writing, the technical indicator Average Directional Index had fallen to 16.16, below the key threshold of 25. This hinted at weak momentum accompanying ATOM’s price.
A look at analytics platform Nansen revealed the top 100 addresses increased their holdings by 2.96% over the past few weeks. According to Coinglass, there has been significant trader interest, with many now expecting the price to continue rising.
Traders were highly active around the $1.61-level on the lower side and $1.78 on the upper side. At these levels, they built over $927,000 worth of long leveraged positions and roughly $274,800 worth of short leveraged positions.
This suggested that bulls have been betting on further upside, while bears could just be exhausted. Finally, ATOM’s Open Interest increased by 3.57% to $124.82 million, a sign of rising trader participation.
