The course continues north

Course analysis based on the pair of values ATOM/USD on Binance

Cosmos Recap:

  • Unnoticed by many investors, who in recent months have primarily focused on the key crypto currency Bitcoin and the “merge” with Ethereum (ETH), the Atom price has increased significantly in value.
  • Starting from the low for the year at USD 5.55, the ATOM price rose by a remarkable 209 percentage points to USD 17.22 northwards.
  • Only in the resistance area between USD 16.50 and USD 17.20 did the trend movement finally falter.
  • The Cosmos ecosystem, often referred to as the “Internet of Blockchains”, now consists of around 50 independent blockchain networks, which can communicate with each other natively, i.e. without having to go through a so-called token bridge.

The upcoming interchain upgrade is driving Atom’s course

  • One of the reasons for the bullish price movement in the last few months of trading can be seen in the Interchain Security Update planned for January 2023.
  • The long-awaited upgrade should benefit smaller Proof-of-Stake (POS) tokens and the in-house cryptocurrency ATOM in particular.
  • One of the largest ETF providers, VanEck, concluded in its recently published analysis that Cosmos Hub is drastically undervalued considering its functionality and interchain operability. VanEck sees the Cosmos Hub only fairly valued at an ATOM price of USD 140.
  • In the last few months, the Cosmos Hub has gradually climbed up the list of the top 100 altcoins and is currently back in the top 20 cryptocurrencies.
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Bullish Scenario (Cosmos)

  • After another price bounce in the area of ​​the green resistance zone, the ATOM price slipped back below the EMA200 on today’s trading day and could give way back into the yellow support area in the short term.
  • The RSI and MACD indicators are also currently pointing to a short-term price consolidation.
  • Already in the support zone between USD 13.46 and USD 13.00, the first bullish investors are likely to make new purchases again. Even a brief fall back to the supertrend at USD 11.73 is unproblematic from the point of view of the buyer camp.
  • If the bulls manage to sustainably overcome the green resistance area between USD 16.50 and USD 17.20 in the coming weeks, a direct jump in price to the lower edge of the red resist zone at USD 19.85 should be planned. The last intermediate high from May of this year can be found here.
  • If the profit-taking remains manageable and the ATOM price does not subsequently slide back below the price mark of USD 16.50, the ATOM price will prospectively rise above the 38 Fibonacci retracement at USD 20.57 towards USD 21.45. This resistance is based off the February 24, 2022 historical low.

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Further price increases imaginable

  • If this resist is also overcome dynamically, the bullish price movement will expand in the direction of USD 23.47. Although the first investors will want to make profits here, a march through to the 50 Fibonacci retracement at USD 25.21 cannot be ruled out.
  • Even a direct rise to the upper edge of the yellow resist zone at USD 26.81 is conceivable.
  • This would have put the ATOM price close to the medium-term price target of USD 29.85. The golden pocket of the complete downward movement, starting from the old all-time high at USD 44.86, is found at this mark.
  • Investors are likely to want to take more chips off the table here.
  • If the market as a whole is also able to break away from its annual lows in the coming months, a price rise into the orange resistance zone between USD 32.60 and USD 34.42 cannot be ruled out until the important update in January 2023.
  • Investors can use short-term price setbacks down to the lower edge of the yellow support area at USD 12.49 for new entries.
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Bearish Scenario (Cosmos)

  • The bears have stood little chance against the buying appetite of the bull camp over the past few months of trading.
  • Any attempt at a more sustained course correction was prevented by the buyers.
  • The ATOM course must first be dynamically sold back in the direction of the EMA50 at USD 13.02. If the bears subsequently succeed in breaking through this support, a first directional decision in the area of ​​USD 12.50 should be planned.
  • If the seller side can generate enough selling pressure and the Atom price corrects to the cross support of the green uptrend line and supertrend at USD 11.72, the subsequent price development should be decided here.
  • A dip below this support to $11.20 will be considered a success by the bears.
  • If there is no sustained trend reversal back north here either, the seller side will do everything possible to push the ATOM price down to the 11 Fibonacci retracement at USD 10.20.
  • This area already acted as a price support in the second half of August.
  • If, contrary to expectations, this area does not hold up, the correction extends towards the lower edge of the turquoise support zone at USD 9.03.
  • Again, increased resistance from the bulls is to be planned for here.
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The bullish chart picture gets the first cracks

  • If the entire crypto market also tends to be bearish as a result, the ATOM price could work off the sell low of July 26 at USD 8.59.
  • However, continued price weakness would then cause Cormos Hub to correct further south towards the horizontal support at USD 7.42.
  • Here at the latest, bullish investors will want to take action.
  • If the bull camp does not return to the floor here either and the ATOM price continues to slide, a retest of the old breakout level at USD 6.60 cannot be ruled out.
  • Then the bears might even want to retest the price of Atom from the yearly low of USD 5.55.
  • From the current perspective, lower ATOM prices are not to be expected, the development pipeline of the Cosmos ecosystem in 2023 looks too promising.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 1.00.

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