ATOM Surges 4% to $4.55 Amid Heavy Institutional Buying
On August 8, ATOM rose 4% from $4.36 to $4.55, breaking key resistance with a volume of 2.19 million units, significantly above the daily average. This increase was driven by institutional buying linked to Coinbase’s support for dYdX on the Cosmos network. Analysts noted this expansion enhances the connection between centralized and decentralized trading.
However, momentum dissipated quickly. In the last hour, ATOM fluctuated, peaking at $4.60 before dropping to $4.56, reflecting a 0.52% hourly loss. The selloff intensified after breaking below $4.58 support, triggering concentrated selling of 26,000 units in four minutes. By market close, trading volume reduced to zero, indicating exhaustion and establishing the $4.58–$4.60 range as new overhead resistance.
Market conditions showed Bitcoin testing $116,000 resistance, with institutional investors moving capital into large-cap altcoins and utility tokens. The volatile price action of ATOM highlighted institutional demand's strength and the short-term rally's fragility. Traders view $4.55 as critical support, monitoring for renewed buying interest to overcome resistance.
Technical Indicators Breakdown
- ATOM gains 4%, trading between $4.32 and $4.67.
- Key breakout at 13:00 on August 8, spiking to $4.65 on high volume.
- Volume exceeds 24-hour average of 1.35 million.
- Support at $4.46 where buyers consistently engage.
- $4.55-$4.67 acts as critical resistance post-failed breakout.
- Final hour sees reversal from $4.58 to $4.60.
- Heavy selling occurs after breaking $4.58 support.
- Trading volume collapses to zero by 15:38.