After dropping by more than 10 per cent in the early hours of the trading session, Cosmos Atom’s price has recovered, and the crypto is up by 15 per cent. However, Cosmos is still down by 28 per cent for the week and 37 per cent for the month.
Throughout the year, Cosmos prices have continually traded in a bearish trend. This has seen the prices drop by 65 per cent since the year started. Although almost all cryptocurrencies have been in a decline since the year started, the Cosmos prices have continually underperformed the markets.
In this week’s price drop, the entire cryptocurrency industry was almost brought to its knees due to UST de-pegging. This resulted in panic in the markets, with many investors, especially those who had pegged their digital assets with UST stable coins, going into a sell-off mode. There were also reports of Terra Luna dropping by 99 per cent during the week.
Such news reports caused ripples across the industry and resulted in the current drop. However, there has been a slight recovery across the industry in today’s trading session. The global market capitalisation of cryptocurrencies has also grown by seven per cent. The sudden recovery may be the reason behind the current Cosmos price surge.
The price of Cosmos recently hit a long-term support level of $8.6, a price the crypto has not traded since late June of 2021. Nevertheless, the prices failed to break to the downside and started a new bullish trend yesterday. Today, the bullish trend has resulted in a 15 per cent market gain.
However, the current bullish trend may be a result of price correction. Therefore, my Cosmos price prediction expects the prices to resume the downward move. There is also a high likelihood that the prices will pierce through the support level and trade below the $8 price level. However, if the prices continue the bullish move and trade above $13, then my bearish analysis will be invalidated. It will also mean a possible trend reversal.
This post was last modified on May 13, 2022, 14:21 BST 14:21