Altcoin struggles to hold $4.00 amid growing selling momentum
The price of Cosmos (ATOM/USDT) fell by nearly 5% in the latest session, slipping toward the $4.00 mark, a level that has repeatedly acted as a key support zone in recent months. Traders are now closely watching whether this base can withstand the renewed selling pressure or if a breakdown could trigger deeper losses.
The daily chart highlights a sustained downtrend since early 2025, with ATOM struggling to recover from heavy losses earlier this year. After failing to reclaim resistance around $4.80 and $6.00, the token has gradually slipped back toward the orange demand zone near $3.90–$4.00.
If this level fails to hold, analysts warn the next leg lower could open the door to $3.60 and even $3.20, marking a potential continuation of the broader bearish structure. On the upside, buyers would need to push the price back above $4.50 to shift short-term momentum.
“The $4.00 handle is psychologically important. A decisive break below it could invite more downside, especially with momentum indicators showing weakness,” noted BITX market strategist.
Market volume has remained moderate, signaling that while sellers are active, there is also interest from bargain hunters attempting to defend the level. The repeated testing of this zone suggests increasing fragility in support, and many traders are adopting a cautious stance.
“Unless ATOM finds a strong bid here, the risk of a sharper decline is elevated. However, if it holds, we could see a relief bounce toward the mid-$4.00s,” According to BITX analysts.
Cosmos now finds itself at a make-or-break juncture. A sustained defense of the $3.90–$4.00 support could provide the base for a short-term rebound. However, a clean breakdown would reinforce the broader bearish outlook that has dominated the token’s performance throughout 2025.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.