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Bitcoin and the crypto market experienced a price correction following U.S. President Donald Trump’s tariff announcements on Liberation Day. Despite the downturn, Cosmos’s native token, ATOM, defied the trend with nearly 10% gains. Analysts suggest that ATOM could sustain its rally, potentially achieving double-digit growth in the coming week.

Key Catalysts Driving ATOM’s Potential Gains

The Cosmos Hub token, ATOM, has shown resilience and recorded an impressive 10% gain amidst broader market volatility. Several factors could support further upward movement, including increased adoption and utility of the Cosmos blockchain and favorable on-chain metrics.

Currently, ATOM is trading above the critical support level of $5. Technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest a positive price trend and underlying bullish momentum for the token.

Technical Analysis and Price Forecast for ATOM

ATOM’s price could test resistance at $5.793, the upper boundary of the Fair Value Gap (FVG) on the daily timeframe. Achieving this level would represent a potential 15% increase. Both the RSI and MACD indicators continue to support a bullish outlook:

  • RSI: Currently at 60, below the overbought threshold of 70, signaling room for further price appreciation.
  • MACD: Displays two consecutive green histogram bars, reinforcing positive momentum.

On its path to $5.793, ATOM may encounter resistance at $5.530. If the price faces a significant correction, support levels are identified at $3.965 and $3.582, the latter being the token’s March 10 low.

On-Chain and Derivatives Insights

On-chain data from multiple analytics platforms highlights a surge in ATOM’s total open interest, measured in USD. This increase aligns with higher trade volumes and stablecoin holdings by whales with over $5 million, indicating sustained demand for the token.

Derivatives data further supports this bullish sentiment. According to recent metrics, ATOM’s derivatives volume surged by over 180%, reaching $595.87 million on Friday. Additionally, the long/short ratio exceeds one, suggesting that traders are predominantly betting on price increases.

“Derivatives markets often provide early signals for potential price trend reversals or continuations, making these metrics crucial for short- and medium-term forecasts.”

ATOM Among Top Gainers Despite Market Uncertainty

Social intelligence data reveals that 93 of the top 100 cryptocurrencies by market capitalization experienced price declines following Trump’s tariff announcements. Amidst the broader market correction, ATOM emerged as one of the top seven gainers, with a strong likelihood of sustaining its rally.

While Bitcoin and major altcoins are consolidating or showing moderate recovery, ATOM stands out with its double-digit gains, supported by continued interest from traders and investors.

Staking Support from eToro Boosts ATOM’s Performance

eToro, a leading social trading and investment platform, recently announced staking support for Cosmos (ATOM) and Polkadot. This development has acted as a catalyst for ATOM’s rally, driving increased interest and demand for the token.

Shortly after the announcement, ATOM confirmed its uptrend. However, market-wide corrections, such as a Bitcoin flash crash, could pose risks to its price trajectory in the short term.

Disclosure: This article is intended for educational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research before making any financial decisions.

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