ATOM, the native token of the Cosmos network, has slipped below every major moving average on its price chart — the 50-day, 100-day, and 200-day lines. Technical traders see that as a clear warning. The breakdown comes alongside negative funding rates on perpetual futures, confirming that short sellers are in control.
Technical Breakdown Accelerates
When a token drops under all key moving averages, it loses a set of support levels that often catch a falling price. ATOM now has no such cushion nearby. The next target, based on the current rate of decline, is the $1.30 to $1.40 range. That implies a drop of roughly 30% from today's levels, and traders are eyeing that zone as a potential stop within the next 60 days.
Funding Rates Turn Negative
Funding rates are periodic payments between long and short traders on perpetual futures. When the rate is negative, shorts pay longs — a sign that bearish bets are winning. For ATOM, those rates have stayed negative for several days, adding downward pressure. It’s a market that isn't just falling; it’s being actively shorted.
There’s no obvious catalyst on the horizon to reverse the move. ATOM has been sliding alongside much of the crypto market, but its technical setup is particularly weak. Without a moving average to bounce from, the token could slide steadily toward the $1.30 area.
Traders are watching that level closely. If ATOM reaches the $1.30-$1.40 range, it will test whether buyers step in or the selling continues. For now, the most likely direction is lower.
