ATOM price falls below $3.60 – Why are traders targeting the $2 level?

Cosmos Hub (ATOM) has fluctuated below $4 as the entire crypto market experienced a severe collapse. This altcoin has recorded a prolonged downtrend for a year, since peaking above $10. After the market crash, ATOM is still down about 19% on the day, at the time of writing.

Although trade tensions play a certain role, there are many other factors that contribute to the fall in the price of ATOM.

Why did the price of ATOM fall sharply?

According to a post from Web3Vibes on the X platform, ATOM futures on Binance have temporarily traded at $0. This activity reflects a change in the Fear and Greed Index, which is currently at 35, indicating that market sentiment is confused.

Source: XSome users on social media have mocked the price drop of ATOM, further undermining confidence in its recovery potential. Deandree commented:

“Oh look, $ATOM finally found the true fair value, the market is truly efficient after all.”

In addition, the fragmentation within the ecosystem also contributes to this situation, as new branches like AtomeOne (ATONE) based on Cosmos have reduced the liquidity of the native token.

This decline is further exacerbated by the staking rewards decreasing from 20% at the beginning of 2025 to 11.84%.

Price Analysis and Prediction

On the chart, ATOM has erased the lows below the price range, around the level of $4. The RSI indicator supports this outlook, at 32 at the time of writing, indicating an oversold condition.

The recovery of the broken level of $3.60 could be a signal for a subsequent price increase towards $4, the trading levels before the crash occurred.

Source: TradingViewThis has been reflected in the rapid inflow of capital pushing the price back above $3. The Money Flow Index (MFI) is currently at 61, indicating an increase in capital flow.

However, an opposite scenario could also occur, especially when some investors are skeptical about the true value of this altcoin. A large amount of capital is needed, along with a return to previous capitalization methods, to restore market confidence.

Liquidation level and outlook

The liquidation heatmap on the daily chart shows that there are still investors betting on another slight fall below $2. The liquidation level with leverage of more $3 million in ATOM has been recorded at a price of around $2.78.

Source: TradingViewOn the other hand, there are liquidity clusters around the $4 level, which is its valuation before the collapse occurred. These levels are seen as the next targets in case the price of ATOM recovers along with the recovery of the crypto market.

Mr. Giáo