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Cosmos price held quite well in the overnight session as the market sentiment has improved. ATOM is trading at $11.20, which is a few points above Thursday’s low of $9.77.The coin has jumped by about 37.6% from its lowest level last week. So, what next for ATOM as it battles the fallout of Terra, the biggest and most popular application in its ecosystem.
Cosmos is a major blockchain project that describes itself as the internet of blockchains. It is a leading platform that was developed by Ethan Buchman and Jae Kwon. Kwon is well-known in the industry for developing Tendermint about 7 years ago. Since then, Tendermint has played an important role in scaling blockchains. Cosmos uses this tendermint algorithm.
There are two parts of the Cosmos ecosystem: Hub and SDK. Cosmos SDK is an enterprise platform that helps developers build blockchain projects. The most notable project built using the Cosmos SDK was Terra, the platform that went burst recently.
Other notable applications created using the technology are Akash Network, Thorchain, Ankr, Anchor Protocol, and Antlia. Therefore, the Cosmos price has retreated recently because of the crash of the Terra ecosystem.
On the other hand, Cosmos Hub is the home for ATOM tokens. It is a platform that connects hundreds of cryptocurrencies to ensure that they communicate well. So, what next for the ATOM price?
ATOM, like other cryptocurrencies and technology stocks, has been in a strong bearish trend in the past few months. In this period, the coin has managed to decline from its all-time high of $45 to last week’s low of $8.18. Now, the coin is in a price-discovery phase.
On the 1D chart, we see that the coin is forming what looks like a bearish pennant pattern, which is usually a sell signal. The downward trend is being supported by the short and long-term moving averages while the Relative Strength Index has moved slightly above the oversold level.
Therefore, the outlook of the Cosmos price is still bearish, with the next key support being at $8.18. The bearish view will become invalid if the price rises above $12.60.
This post was last modified on May 20, 2022, 07:00 BST 07:00