Cosmos has been experiencing a significant uptrend since breaking out and retesting the trendline a few days ago. ATOM surged to $2.65, a level not seen since November, indicating renewed market optimism.
Currently, Cosmos [ATOM] is trading at $2.64, up 8.2% on the daily charts and 19% on the weekly charts. The increase in price is supported by a 20% rise in volume and 8.2% in market cap, suggesting an increase in usage activity.
Increasing adoption rate indicated by on-chain activity
In the fourth quarter of 2025, Cosmos witnessed a sharp decline in network usage, with active addresses dropping from an average of 60k to below 1k. However, in 2026, there was a resurgence in demand, with active users increasing from 4k to 8k and total addresses reaching 3.5 million.
Source: Artemis
During the same period, daily transactions rose from 13k to 30k, with total transactions reaching 86.9 million. The simultaneous increase in transactions and addresses signifies growing network adoption, driven by organic demand that enhances the token’s long-term value.
Surge in demand for ATOM across market participants
As the market rebounded, buyers defended higher levels in the Spot and Futures markets. Buyers outweighed sellers, with 4.2 million in Buy Volume compared to 3.9 million in Sell Volume.
Source: Coinalyze
ATOM recorded a positive Buy Sell Delta of 300k, indicating aggressive spot accumulation. Strong demand in the spot market has historically boosted prices due to increased scarcity.
On the Futures side, ATOM’s Open Interest rose by 10% to $183 million, while derivatives volume increased by 27% to $220 million. Futures inflows amounted to $53.09 million, with outflows at $49.04 million, resulting in a 475.9% surge in Futures netflows to $4.05 million.
Source: Coinglass
Rising derivatives volume and Open Interest indicate greater market participation and capital flows. In this scenario, most participants took short positions based on the Long/Short Ratio, suggesting bearish expectations.
Can ATOM’s momentum be sustained?
ATOM has shown consistent gains in price as buyers strengthened their positions in the Spot and Futures markets, supported by strong fundamentals. This has boosted ATOM’s momentum, leading to a positive flip of short-term moving averages EMA 20 and 50.
ATOM’s Relative Strength Index (RSI) reached 70, indicating strong buyer dominance. These market conditions demonstrate the coin’s trend strength and the potential for continuation.
Source: Tradingview
If market demand remains high, ATOM could test EMA 100 at $2.7 and aim for its long-term resistance at $3.3. However, if momentum wanes, ATOM may retrace to $2.2.
Final Thoughts
- ATOM surged by 8% to hit a two-month high of $2.65 before retracing on the price charts.
- Network usage rebounded, driving demand for ATOM in the Spot and Futures markets.
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