Atrium Price Analysis: Was the recent uptrend a trap?

Although Atrium has recently overcome many key resistances, the situation with intra-chain data and derivatives markets seems controversial; But can it be said that the recent uptrend was a price trap to catch buyers?

According to the Kevin Telegraph, some traders, after looking at the Atrium chart, have come to the conclusion that the quarterly downward trend in this digital currency has ended for some reason. Atrium is currently in the $ 3,100 price range and has grown 43% in just 15 days. Another very important point is that Atrium managed to break the resistance of the downlink on its schedule on February 7 (February 7).

Should investors celebrate the beginning of Atrium’s uptrend and wait for the price of this digital currency to reach $ 4,000 or more? The answer to this question depends on the position of the micro-retailers and the internal chain characteristics of the Atrium network. For example, we need to know if a charge of over $ 30 for an Atrium network affects the use of decentralized applications or Dapps. We also need to know what other factors may be stopping Atrium’s price growth.

Atrium Price Analysis: Was the recent uptrend a trap?
Atrium price table; 2-day market view Atrium / Dollar.

Atrium prices fell 55.6% to $ 2,160 on January 24 from $ 4,870. In addition, Bitcoin failed to break the resistance of $ 45,500 the day before, and traders concluded that the digital currency is likely to face a 12% correction.

On February 7, Canada’s KPMG, one of the world’s four largest audit firms, announced that it had invested in Bitcoin and Atrium. According to Benji Thomas, one of the company’s CEOs, KPI believes that other digital currencies have reached the required maturity and growth.

Derivatives market data show something else

To understand how confident retailers are in improving Atrium prices, we need to analyze the data on constant futures. The problem is that small traders often prefer to use these financial instruments; Because the price of these contracts usually follows the price of the immediate markets.

In the futures market, the volume of long (buy) and short (sell) trading positions is always the same, but the amount of leverage used in them is different. Exchanges in such transactions receive money from each party (buyers or sellers) that use more leverage and pay it to the other party. This fee is called the capital raising rate.

Atrium Price Analysis: Was the recent uptrend a trap?
Eight-hour funding rate in permanent Atrium futures contracts

The capital rate index shows whether small traders are excited or not. If small traders are excited, the index will rise above 0.05 percent (equivalent to 1 percent per week). This percentage has been negative in recent months; That is, traders tend to enter the market. There are currently no indications that retailers are confident enough to enter a leverage session.

We also need to look at the data in the Atrium network to see if this uncertainty is specific to leverage transactions. For example, although there is no clear link between the price of Atrium and network usage, the declining trend in Atrium prices, while reducing the volume of transactions and the number of active users of this network, can be worrying.

The state of the internal chain indicators is alarming

By measuring the value of transactions in the Atrium network, we obtain a reliable index that shows whether merchants have used this digital currency effectively. Of course, if we take into account the adoption of this digital currency in second-tier scalability decisions, its accuracy will decrease. In any case, this index is still a good starting point for us.

Atrium Price Analysis: Was the recent uptrend a trap?
Schedule of total daily transfers of Atrium’s own tokens

Atrium currently costs an average of $ 6.2 billion a day, up 55 percent from its peak in December. To be realistic, we must also take into account that $ 6.2 billion is not far from the minimum of $ 5.6 billion a year. Therefore, we can say that this index, at least in the core network of Atrium, shows no signs of rising prices.

In addition, analysts should consider using decentralized applications. It is worth noting that the main focus of the Total Locked Capital (TVL) value index is on lending platforms and decentralized exchanges (DEX). As a result, by measuring the number of active addresses in these protocols, we can better assess the situation.

Atrium Price Analysis: Was the recent uptrend a trap?
Decentralized activity of Atrium applications over the last 30 days

With the exception of Opensea NFT, the number of active addresses in Atrium Decentralized Applications has decreased by 28% in the last month. This is somewhat disappointing because Atrium is specifically designed for decentralized applications.

Overall, investors see the recent rise in Atrium prices above $ 3,000 as a trap. This only makes sense if Atrium’s transaction performance and use in decentralized applications increase. Considering the activity of small retailers, the neutrality of the rate of capital supply can be seen as a sign of increasing the price of Atrium; This is because these traders usually enter leverage positions after a strong uptrend.

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