Author：Encryption Jianghu
Key Takeaways
What’s the current price outlook for ATOM?
ATOM was trending, stabilizing above the $3 mark after almost crashing to nearly zero, aligning with the broader market.
Can the price bounce back to previous levels?
The liquidity resting around previous levels for ATOM suggested traders believed the altcoin could revisit.
Cosmos Hub [ATOM] was ranging around the $4 zone when the entire crypto market crashed.
The altcoin had been in a year-long downtrend since peaking above $10. Following a broader market crash, ATOM remained down by roughly 19% on the day, at the time of writing.
While trade war tensions played a role, other factors also contributed to ATOM’s price decline.
Why did ATOM prices crash to nearly zero?
According to a post by Web3Vibes on X (formerly Twitter), ATOM futures contracts on Binance were temporarily trading at $0.
This activity reflected the shift in the Fear and Greed Index, which was at 35 at press time, indicating fear.
A few CT users mocked the altcoin’s price drop, further eroding confidence in a bounce. Deandree wrote,
“Oh look, $ATOM finally found the true fair value, markets really are efficient after all.”
Additionally, ecosystem fragmentation played a role, as new forks like the Cosmos-based AtomeOne (ATONE) diverted liquidity away from the original token.
The decline was further compounded by a reduction in staking rewards, which dropped from 20% in early 2025 to 11.84%.
Price analysis and prediction
On the charts, ATOM had wiped the lows below the range, around the $4 level. The RSI supported this outlook, as its value reading of 32, at press time, indicated oversold conditions.
A reclaim of the broken $3.60 level could be a signal for a further rise toward $4, earlier trading levels before the crash.
This was seen in the capital inflow that took the price quickly back above $3. The Money Flow Index (MFI) was at 61, suggesting capital inflow.
The opposite could also be true, especially now that some traders are skeptical about the true value of the altcoin. Massive capital was needed, along with a return to earlier capitalization practices, to restore confidence.
Liquidation levels suggest…
The liquidation heatmap on the daily chart showed that there were still traders betting on another slight dip below $2. The liquidation leverage of over $3 million in ATOM was observed at a price of approximately $2.78.
On the other hand, there were clusters of liquidity around $4, which was its valuation before the crash. The levels stood as the next targets in case ATOM price rebounded alongside the broader crypto market.
