- ATOM’s demand in the derivatives market was high last week.
- The token’s value increased by over 4.5% in the last 24 hours.
As per the latest analysis, Cosmos [ATOM] was still at this cycle’s bottom. This hinted that this might as well be the right time for investors to accumulate more ATM before its value takes off.
Therefore, AMBCrypto checked on-chain metrics to check whether investors were buying ATOM.
Is this the right time to accumulate?
Michael van de Poppe, a popular crypto analyst, recently posted a tweet highlighting an interesting development regarding ATOM.
The tweet mentioned how ATOM was successfully testing a strong support level, which hinted at a bull rally over the coming days.
If the token manages to test the level further, investors might witness a considerable rise in price, making this the right opportunity to accumulate more.
In fact, derivatives investors have already been buying ATOM. This was the case as ATOM’s Funding Rate remained high throughout the last week.
Source: Santiment
The token might have already begun a bull rally as its daily chart turned green. According to CoinMarketCap, ATOM’s value surged by nearly 4.5% in the last 24 hours.
At the time of writing, the token was trading at $12.30 with a market capitalization of over $4.8 billion. The chances of a further uptrend continuing seemed likely, as ATOM’s Open Interest rose along with its price.
AMBCrypto then checked Hyblock Capital’s data to see where ATOM’s price might reach in the short term. As per our analysis, ATOM’s liquidation will rise above the $12.5 mark.
So investors might witness a slight price correction at that mark before it again starts to move up.
Source: Hyblock Capital
Most technical indicators also looked pretty bullish on the token. For instance, both the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) registered upticks.
This suggested that the possibility of ATOM moving up was high. The token’s MACD also displayed the possibility of a bullish crossover in the coming days.
Source: TradingView
Read Cosmos’ [ATOM] Price Prediction 2024-25
Cosmos’ network activity also looks decent
Amidst this bull rally, the blockchain’s network activity rose. This was evident from the massive spike in its daily number of transactions.
However, despite the rise in the number of transactions, ATOM’s daily active addresses dropped over the last four weeks. It remains to be seen whether Cosmos’ network activity will impact the token.
Source: Artemis
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