• Cosmos (ATOM) tests support zones within a falling wedge pattern suggesting a potential bullish reversal.
• A rebound with increased volume following up after recent dip indicates strong buyer interest at critical levels.
• MACD flattens and RSI rebounds from oversold, hinting at short-term price recovery.

Cosmos Hub (ATOM) is trading at $3.14 today, dropping 23% in the past week. Despite the declines, it is holding support levels and showing a strong buying interest which hint at a possible price rebound.

Technical Pattern Suggests Potential Breakout

Analysis from MOLVI_Y3 points to Cosmos (ATOM) nearing the lower boundary of a long-term falling wedge. This structure shows consistent lower highs and lower lows which started in late 2021. The wedge appears to be converging toward a critical support zone between $2.60 and $3.00.

This range held strong during mid-2020 and mid-2022rallies.This makes it become a point of interest. A recent drop below the support followed by a sharp recovery suggests a possible bear trap. The presence of a long lower wick shows aggressive buying activity.

Volume on the weekly candle has surged,this is often a signal of capitulation and strong accumulation at key levels.The wedge pattern points toward a potential breakout,but price must reclaim the $4.50–$5.00 area.

Market Activity Points to Buyer Interest

Cosmos (ATOM) experienced a steep selloff from $4.20 down to nearly $2.00. This move was followed by a stabilization phase around the $3.15 level. The rapid recovery formed a long lower wick, due to short-term bottoming.

Bearish pressure is weakening and the MACD indicator is below the zero line but with a flattening histogram bars.A bullish crossover has not yet occurred, but it appears to be approaching. Traders are watching closely for confirmation.

RSI levels are currently near 38, a signal that the asset has been oversold recently. A move above $3.50 with strong volume would provide short-term confirmation of buyer strength.

Market Sentiment Remains Cautious Amid Volatility

Cosmos (ATOM) has dropped 6.67% over the past 24 hours and it is trading around $3.16 as per CoinGecko data.Broader market uncertainty and rising liquidation levels have contributed to the selling pressure.Futures trading and spot volume rose,but open interest has dropped reflecting reduced risk appetite among traders.

Short positions currently outweigh longs, with a long/short ratio of 48.53%/51.47%.With funding rates leaning neutral to negative, Cosmos may retest the $3.00 psychological support if sentiment doesn’t shift.