Osmosis merger proposal and technical selling: Cosmos slides 7.21%

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Cosmos slides 7.21% today to $1.87

Highlights

Osmosis founders proposed merging its DEX and liquidity engine into Cosmos Hub, converting 665.1 million OSMO tokens into ATOM and centralizing governance and liquidity.
The Cosmos Hub will remain the principal platform for staking, governance, and transaction fees, leveraging the Inter-Blockchain Communication Protocol.
ATOM is consolidating between $1.75 and $2.05 amid dominant bearish momentum and a high probability of continued declines next week.

Liquidity centralization as Osmosis merges with Cosmos Hub

On March 11, 2026, Osmosis co-founder Sunny Aggarwal introduced a governance proposal to merge the Osmosis decentralized exchange and liquidity engine into the Cosmos Hub. The conversion of about 665.1 million OSMO tokens into Cosmos (ATOM) was outlined, centralizing liquidity and governance participation under Cosmos Hub's framework. The Cosmos Hub remains the center for staking, governance, and transaction fees, enabled by the Inter-Blockchain Communication (IBC) Protocol, though price action has remained under broader selling pressure.

Mixed oscillator signals contrast with firm downside momentum

Momentum signals on the daily chart for ATOM are decisively bearish, with MACD showing a strong sell and the ADX at a neutral yet low 17.44, indicating weak trend strength. The RSI reads 48.8 and tilts lower, while Stoch RSI is neutral and CCI is overbought, highlighting divergence among oscillators. The Bull/Bear Power (BBP) favors buyers (Strong Buy), but the Awesome Oscillator remains neutral. ATOM currently trades near today's low, with high volatility and sustained downside pressure after the open; the mixed oscillator signals contrast with clear downside in both price action and momentum, supporting an overall heavy intraday tone. The immediate technical barrier is the Ichimoku Kijun at $2.0595.

High probability of further losses as consolidation prevails

Over the next five trading days, ATOM is expected to consolidate within a typical volatility band between $1.75 and $2.05. The probability of further price declines above 80% remains high, while a rebound is unlikely. The baseline scenario calls for sideways consolidation within this channel. A break above $2.05 (Kijun) could initiate a move toward $2.15, but a fall below $1.75 would expose the asset to additional downside as longer-term technical signals remain negative.

Anton Kharitonov, analyst at Traders Union, highlights that Cosmos (ATOM) remains pressured despite recent governance news from the Osmosis merger proposal. He sees that technical momentum is decisively bearish, with strong downside bias and weak trend signals confirming persistent selling. The analyst remains cautious, noting that the asset is trading below major averages and only immediate consolidation can be expected unless $2.05 is reclaimed. "Base case is sideways trading between $1.75 and $2.05 — as long as we stay below $2.05, risk remains to the downside."

Earlier, analysts noted that Cosmos was experiencing persistent bearish momentum amid mixed technical signals and elevated volatility. The most recent data underscores the dominance of sellers and suggests that traders should monitor the $1.75 support closely, as a sustained breach could accelerate downside risk in the near term.

Source of Data: ATOM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.