ATOM Token Shows Signs of Recovery After Year-Long Downtrend
Cosmos' ATOM token has shown signs of recovery after a year-long downtrend, with recent movements indicating oversold conditions and potential for further growth.
ATOM recently wiped the lows below $4, a level where liquidity is resting, suggesting oversold conditions. Traders anticipate a revisit to previous levels due to this liquidity. Despite a year-long downtrend from peaks above $10, some traders are still betting on a slight dip below $2, with over $3 million in liquidation leverage at around $2.78.
A reclaim of the broken $3.60 level could signal a further rise towards $4. There are clusters of liquidity around this level, which was ATOM's valuation before the crypto market crash. Before the crash, ATOM was ranging around the $4 zone. After nearly crashing to near zero, ATOM is now trending and stabilizing above $3. Long-term forecasts predict ATOM's price to reach around $3 to $4.50 by October 2025, with some optimistic projections going as high as $22 or more by 2025 and above $50 by 2031, thanks to its blockchain interoperability features and ongoing ecosystem development.
ATOM's recent price action suggests a potential recovery, with oversold conditions and liquidity clusters around key levels. Traders are optimistic about ATOM's prospects, with long-term forecasts predicting significant growth. However, ecosystem fragmentation and reduced staking rewards have contributed to ATOM's price decline, indicating challenges ahead.
