Cosmos Profit Booking Swallows the 20% Movement of the Previous Day!
Cosmos has been moving like a rocket since August 2021, providing 4x profits to its investors. It has been made possible because of the wider appreciation and use of Cosmos blockchain. Wider acceptance by investors drew investor interest into the asset, which further prompted them to hold the governance token of Cosmos network. Doing so will allow investors to vote for any upcoming and proposed changes in the Cosmos blockchain network.
Apart from buying this token, ATOM is also rewarded through the hybrid proof of stake algorithm of Cosmos. Its plans and intention provide a foundation for cryptocurrencies to interact with one another and allow interoperability. Today it has some competitions but still carries a higher probability of reaching a progressive level in the coming days.
As of October 2021, ATOM has attempted again to breach its previous all-time high of $45, which was made just a month ago. Cosmos holds the 22nd position with a market capitalization of $8.22 billion. Cosmos blockchain is the real deal and not the ATOM crypto token that is merely a governance token. Holding ATOM could potentially provide you with a scope of getting exponential returns.
Cosmos Price Analysis
ATOM cryptocurrency has reached a new high level of $45, and the current movement could have helped push it beyond $50. Unfortunately, profit-booking at the oddest time has hindered its positive stance, but ATOM has the potential to recover from this downfall in the coming days.
Breaking down the price action of ATOM, we witness a downside consolidation from $45 in Sept to $32 in October. This vicious profit booking was broken with a strong breakout movement of October 26, 2021, where ATOM broke a ceiling of 20% gains in a single day.
Based on our Cosmos price prediction, ATOM now has a strong support level at $32, followed by swing support of $36. On the upside, some resistance is built up between the range of $43 to $45. The 200-day moving average is still quite distant from its current value.
From the purview of Bolliger bands, we can witness the positive stance to dissuade from September 26, and to date, ATOM is still attempting to breach the level. The widening of bands indicates a scope of higher volatility. RSI can be seen taking a complete reversal in an inverted V pattern.