-8.04% for Cosmos as Bithumb halts ATOM deposits during network upgrade

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Cosmos drops 8.04% today to $1.624

Highlights

Bithumb will suspend Cosmos (ATOM) deposits and withdrawals from June 10 to facilitate a network upgrade, impacting platform liquidity short term.
ATOM trading on Bithumb may face temporary disruptions during the upgrade, increasing operational friction and potentially affecting trading flows.
ATOM/USD trades under key moving averages with bearish momentum; projected range is $1.5291907–$1.7188093 as downside risk remains elevated.

Liquidity disruption as Bithumb suspension tempers trading flows

Bithumb has announced it will temporarily suspend Cosmos (ATOM) deposits and withdrawals beginning June 10 to enable a scheduled upgrade of the underlying Cosmos network. This restriction on transactional activity may reduce near-term liquidity for ATOM holders on the Bithumb platform, and could disrupt regular trading flows during the upgrade period. Market participants are likely to monitor the execution and outcome of the network update as it may create short-term operational frictions for users.

Sustained bearish momentum as multiple indicators flag resistance

ATOM/USD is trading below the MA-20 ($1.6568500) and MA-50 ($1.7365800) on the hourly chart, with price also beneath the daily MA-200 ($2.0531700). The Ichimoku Kijun at $1.6865000 represents immediate resistance to upward price action. Momentum indicators remain bearish—MACD and ADX both signal strong selling strength. RSI is reading 40.83, while CCI remains on Sell. Notably, Stoch RSI sits in the Overbought region, and oscillators are diverging, which may increase the potential for whipsaw moves. BBP confirms intraday seller dominance, while the Awesome Oscillator aligns with the current bearish momentum.

Downside scenario as volatility bands contain breakout risk

In the short term, ATOM/USD is expected to trade within the $1.5291907–$1.7188093 range, a volatility band relative to current levels. The probability of further downside development is high, with a low likelihood of a sustained upside reversal. A sideways move within this corridor remains the baseline scenario; a bullish shift would require a clear break above immediate resistance at $1.6865000, while a close below $1.5291907 may open the way for additional declines.

Anton Kharitonov, analyst at Traders Union, sees persistent technical weakness in Cosmos (ATOM), with price action remaining subdued below key moving averages and indicators confirming strong bearish momentum. He notes that Bithumb’s temporary suspension of ATOM deposits and withdrawals for the Cosmos network upgrade may further limit liquidity and create operational frictions, fueling cautious sentiment among traders. Downside risk dominates the near-term outlook, especially if price closes below $1.5291907. "Until ATOM regains strength above $1.6865000 and the impacts of the upgrade become clear, I remain defensive on this token."

Earlier, analysts noted that Cosmos faced sustained downside risks due to persistent bearish momentum and operational challenges associated with exchange suspensions. The current analysis reinforces this bearish outlook, highlighting ongoing pressure under key moving averages and emphasizing that a decisive move below $1.5291907 could accelerate further declines 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.