Cosmos tanks close to 50%: Can ATOM end the negative action?

Tendermint has been the greatest contribution of Cosmos blockchain to the cryptocurrency world, which is now close to an 810 billion strong market. Even during the negative rainy season for crypto, Cosmos has been able to become a base of protocol operations for 100s of blockchains.

A majority of these blockchains have unique use cases, as the core thesis of Cosmos is the need for each decentralized application that has scaled to new highs to require a personal blockchain to handle transactions. 

On top of Tendermint, Cosmos has also developed the IBC or Inter Blockchain Communications protocol that makes it possible for cosmos-supported blockchains to become interoperable. This protocol can easily be merged with faster transition-capable blockchains to improve the overall capability of transaction processing.

In February 2022, Cosmos released a feature for interchange accounts to allow users to handle their wallets through a single wallet on different Cosmos-based blockchain wallets. Features and upgrades have been a consistent part of the ATOM (Cosmos) blockchain. The market capitalization of ATOM has been above $2.5 billion.

ATOM (Cosmos) overcame its competitors with a strong price spree of buying rallies. The resistance of $15.8 becomes a key level of dissuasion for the price movement in the coming days.

As a result, the token has tanked to $9. The support from the immediate level of $8.95 is the last line of defense before the May 2022 dip of $5.5. Can ATOM sustain the above-mentioned support? Read our Cosmos prediction to know!

ATOM PRICE CHART

Witnessing the price action of ATOM to have reached its peak at $15, the intent of a breakout would require even higher buying sprees than already witnessed on charts. The immediate support could create a sense of dip if there is a further decline.

Although the price action since October 2022 has failed to make a positive mark. RSI is showing an immense uptrend with just marginal gains. On another note, the MACD indicator has marked a bearish crossover pattern with the outlook of a bullish crossover soon.

Technicals showcase a huge difference from the last traded ATOM value to the 100 EMA curve. All these aspects highlight a probability of a breakout. In reality, the declining traction volumes have indicated buyers keeping themselves away from the temptation offered by Cosmos.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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