Atrium Price Analysis: Now is a Good Time to Buy?
While the price of Atrium has been declining in recent days, many investors are speculating that the world’s largest Altcoin may have hit its bottom. By looking at market data and comparing Atrium’s current trends with those of the past, we can see if we have a good time to buy now.
To Report Kevin Telegraph, Atrium prices fell below $ 1,100 in the early hours of June 14 (June 24) and reached levels not seen since January 2021 (December 1399). This downtrend represents a 78% price correction from the historic high of $ 4,870 on November 10, 2021 (November 19, 1400).
Most importantly, Atrium lost about 33 percent of its value against Bitcoin between May 10 and June 14, 2022; Just like what happened in mid-2021.
Bitcoin experienced limited price fluctuations for two weeks in 2021, before the Atrium / Bitcoin currency market reached a peak of 0.082 points. Two months before this peak, decentralized finance (DeFi) projects peaked again, bringing the total value of locked-in capital in the Atrium network from $ 42 billion to $ 93 billion.
What was behind Atrium’s poor performance in 2021?
Before jumping to conclusions, let’s take a look at the vast array of data to see what led to Atrium’s 31% correction against Bitcoin in 2021. Seeing the number of active URLs is a good place to start.
These data show a steady growth in the number of active addresses, which increased from 595,620 wallets in mid-March 2021 to 857,520 in mid-May of that year (May 1400). Thus, in addition to the jump in the value of total locked-in capital, the growth in the number of users also surprised investors.
Atrium’s 31% drop against Bitcoin in June 2021 reflected a break from the unprecedented growth of the world’s largest coin’s ecosystem. However, the aftermath of the break was devastating, followed by a 56% drop in Atrium prices after the Defy market peaked.
To understand whether Atrium will achieve similar results, we need to compare recent data. At the time, those expecting a 31% drop in Atrium against Bitcoin traded at the end of the downtrend, near $ 1,800, on June 27, 2021, followed by a price over the next 50 days. It increased by about 83%.
Is Atrium showing a buy signal now?
This time, however, there is no news of a Difai market boom, and before the negative 33% performance against Bitcoin this year, the index of the number of active addresses in the network was slightly lower than before.
As of May 10, 2022, Atrium has 563,160 active addresses, which is significantly less than in the past few months. This is exactly the opposite of the mid-2021 trend in which Atrium accelerated its decline against Bitcoin.
Some may still think that, despite the relatively constant number of users, the Atrium network, with its high total locked-in capital value, can show that it is growing.
The data show that on May 10, 2022, the total value of capital locked in the Atrium network was about $ 87 billion, down $ 102 billion from the previous month. Therefore, there is no connection between Atrium’s temporary break in mid-2021 after the Defy market peaked and the current 33% drop in the price of this digital currency against Bitcoin.
These indicators show no evidence of similarity between the two periods, and the $ 1,200 area may be the bottom of a cycle, the diagnosis of which depends on factors other than the use of the atrium network.
Given the low number of active addresses and the total value of locked-in capital before the recent price correction, investors need to be very careful when forecasting the market floor.