ATOM has recovered more than 30% from its most recent local low. During last week’s cryptocurrency market crisis, the cryptocurrency’s downside was extended, and the solid recovery could be a portent of things to come.
Thanks to the substantial reduction, ATOM is an appealing purchase, especially given the lower price range obtained last week. Given the healthy buildup over the last few days.
The rally in ATOM has not been as strong as one might expect considering the extent of the drop. This is most likely due to ongoing uncertainty, particularly on the potential of more losses.
The introduction of the Cosmos blockchain‘s interchain security is approaching. The most recent news concerning the launch came just before the Terra UST attack, which contributed to the overall crypto meltdown.
The debut of interchain security could help boost investor confidence, which could help the market recover. A day after the interchain security update was deployed, ATOM’s developer activity statistic on Santiment reveals a considerable increase in developer activity.
In the previous 24 hours, ATOM’s supply owned by whales metric has increased somewhat. This could indicate a rise in investor confidence. The Binance derivatives financing rate recovery confirms this, indicating that investor interest has returned.
At the time of writing, ATOM was trading at $11.78 per share, down slightly from its 24-hour high of $12.48. However, it is up nearly 31% from its low of $8.55 on May 12th. ATOM’s pricing was last that low in August 2021. It also indicates an 80% markdown from its previous high of $44.56.
Closing Lines
The recent rebound in ATOM could signal the beginnings of greater upside in the coming weeks. This does not, however, imply that the market will rebound. There is still a big possibility of a further downside and a possible bear trap, necessitating caution.
Also Read: Injective Protocol (INJ) Rallies 100%+ Just After the Launch of Cross-Chain Systems of Support for Cosmos
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