Strong rebound from $4.25 highlights buyer confidence amid recent sell-off
Cosmos (ATOM) has staged an impressive recovery, surging more than 11% in the past 24 hours after bouncing off a major support level. The token, which had been under pressure from sustained selling earlier in August, is now trading around $4.51, reinforcing market optimism that buyers are regaining control.
The 4-hour chart shows ATOM had previously broken down from a rising channel formation, leading to a steep decline. However, the price found stability at the critical $4.20–$4.30 demand zone, where buying momentum emerged strongly. This rebound suggests that market participants view this level as a reliable accumulation area.
“The surge from $4.25 is a technical turning point,”According to BITX market analyst. “The defense of this support has created a short-term bullish case, with the next upside test likely around the resistance range of $4.80 to $5.00. Sustained closes above this barrier could open the door to a broader recovery.”
Volume patterns further confirmed the move, as buying activity spiked when ATOM touched its support floor. This indicates that both retail traders and larger players stepped in to absorb selling pressure. The green zone highlighted on the chart now serves as immediate support, while the deeper brown zone around $4.00 remains a last line of defense if bearish momentum returns.
Despite the rebound, analysts caution that the market remains sensitive to broader crypto sentiment. If ATOM fails to break past $4.80, it could face another period of consolidation. Still, the 11% surge from support provides a strong signal that buyers are willing to defend key levels, potentially shifting short-term market dynamics in favor of bulls.
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.