The price of Cosmos token ATOM is forecast to turn bullish
COSMOS tokens are used to power the network and can be staked by users to earn rewards.
ATOM prices have been in a downward trend since reaching an all-time high in June. But recent signs suggest that the ATOM price may be ready to turn bullish. Here are some points to note:
- Cosmos is considered the internet of blockchains, with support for a variety of blockchain protocols.
- The cryptocurrency ATOM has appreciated by double digits in the last 24 hours.
- The token is recovering, but it trades below a significant barrier.
The Cosmos native token ATOM/USD is recovering after a recent dive. The coin has increased more than 11% in one day to the current price of $8.13. On June 18th, the cryptocurrency fell to a low of $5.5 before recovering somewhat.
Cosmos Network is a blockchain system that wants to create the internet of blockchains.
This is done by making an inter-connected ecosystem of applications and services. The goal of Cosmos is to make a more efficient network of blockchains that work better together.
Zones are separate blockchains that are connected to the main chain. Developers can add more chains to the hub, creating a network that can communicate with each other.
Recent Cosmos gains occur amid a bear market in cryptocurrency. The gains, too, defy the turmoil surrounding Ignite, the firm that launched Cosmos.
On Friday, Ignite’s CEO announced his departure from the business. The company recently announced that it would be eliminating over half of its staff.
ATOM is currently the 18th largest cryptocurrency by market capitalization. The ATOM/USD bulls need to push and sustain prices above $5.80 to resume the uptrend.
Cosmos has been in a consolidation phase since last month as ATOM/USD formed higher lows around $4.50. ATOM bulls need to break above the descending channel to resume the uptrend.
ATOM/USD bulls also need to break above the $5.80 resistance to confirm that ATOM bottomed out at $4.50.
ATOM/USD technical analysis
It is difficult to predict the future of any cryptocurrency in the present bear market. However, we think that the Cosmos token will face challenges at $8.7.
The level defended by the recent price rally was previously undamaged, but bulls are losing momentum at $8.0.
However, the moving averages and MACD indicators suggest that a rise is likely at current prices. Price action should be monitored, with a break above $8.7 triggering further increases.
On the downside, ATOM’s support level is $4.5, and a break below this level could lead to $2.0 USD. In recent days, ATOM has found support at $4.5, which is a crucial level to watch. If the price of ATOM breaks below this mark, it might head towards $2.
ATOM bulls must drive the price above $8.7 to invalidate the bearish setup and create further upside potential.
Its support is at $4.5, which would be a floor if it breaks below this level. The last few days have seen ATOM find support at $4.5, which is a crucial area to watch.
The Cosmos token is in an uptrend, but it has already hit immediate resistance at $8.7. Moving averages and the MACD line provide support, while the MACD line further demonstrates momentum.
We suggest examining price movement at the current level of resistance. If the price fails to break past $8.7, it may fall back to $7.0.
ATOM is presently valued at $7.8, and its short-term technical prediction is bullish. On April 4, ATOM/USD broke out of a descending triangle pattern, allowing for the potential to rise towards $12.
The bulls will need to push the price higher than $8.7 to invalidate the bearish descending triangle.