Bitcoin
BTC$23 377.12

-4.18%

Ethereum
ETH$1 842.25

-5.57%

Tether
USDT$1.000068

0%

USD Coin
USDC$0.999915

-0.01%

Binance Coin
BNB$306.80

-4.80%

XRP
XRP$0.374134

-3.28%

Cosmos (ATOM) Could Ride High on Fundamentals


May 2020

Traders who pay the necessary attention to fundamental analysis of cryptocurrencies should know that Cosmos (ATOM) has one of the most actively developing ecosystems for interoperable blockchains, decentralized applications, and cryptocurrencies.

Without delving deep into technicalities, allow us to state that if appropriately realized, the solution offered by the Cosmos team is going to be much sought after by high-tech and business entities that plan to exploit blockchain. The reason being that current blockchain ecosystems mainly exist autonomously and are literally deaf to peer networks, which leads to issues related to scalability, productivity, and, ultimately, mass adoption of the blockchain technology and cryptocurrencies. 

Basically, ATOM is a must-have cryptocurrency for technologically-minded traders who pay the deserved respect to fundamentals and deal with coins that aren’t necessarily going to bring immediate profits since Cosmos has had only a few significant price spikes in the history of its price action.

All-time ATOM price chart

When it comes to the fundamental upgrades, there is an upcoming launch of the Inter-Blockchain Communication (IBC) protocol that is going to power the so-called Internet of Money (IoM), a solution that is going to facilitate a seamless transfer of cryptocurrencies and other types of digital assets within the proprietary blockchain ecosystem.

The successful launch of IBC should be a significant breakthrough for this project - in that case, the price of ATOM is likely to receive a boost that might even reverse the lingering downtrend that began after the coin had bumped into the all-time high at $7.25. On March 13, the darkest day for the cryptocurrency market in 2020, Cosmos sank to the all-time low at $1.06 but quickly kicked off the bottom. Given the approaching Bitcoin halving and the launch of IBC, ATOM has the potential to leapfrog over a couple of resistance levels and start forming a trend reversal pattern of some sort.

ATOM could consolidate before the burst 


The weekly  ATOM/USDT chart clearly shows how profound the impact of the bears has been in this particular market. The sellers have been dominating since the middle of 2019 but, according to the Stochastic showings, their pressure appears to have peaked during the climax of the market crash.

1-week ATOM/USDT chart

Also, a keen eye should have noticed a clear-cut bullish divergence revealed by the same oscillator; therefore, if Cosmos manages to gain a stronger upward momentum, inspired by fundamental improvements and the overall market stabilization, traders could witness a price surge of around 45%, right towards the 0.38 Fibonacci level where there is also a tight convergence with the resistance line at $3.4.

But before that, the price has to make its way out of the area between the $2.1 support and the current three-weeks’ old resistance at $2.5 that again converges with 0.236 on Fibonacci, and then penetrate the interim resistance at $2.8, after which, the road to $4.2 is going to be wide open.

Given that the newly emerged oil crisis might halt the ongoing recovery of all markets, including the cryptocurrency one, ATOM might well get stuck in this consolidation zone for another two to three weeks. Traders who recognize the prospects of ATOM should use this period of consolidation to increase the size of their position in this market, gradually.

Author: Alex Paulson for Crypto-Rating.com

Related

Cosmos (ATOM) Could be Preparing For a Bounce to $7
Cosmos (ATOM) Could be Preparing For a Bounce to $7
Cosmos (ATOM): Relentless In Its Strive to the Upside
Cosmos (ATOM): Relentless In Its Strive to the Upside
Cosmos (ATOM) Is Bursting Out of the Range
Cosmos (ATOM) Is Bursting Out of the Range
Cosmos: Healthy Recovery or Dead Cat Bounce?
Cosmos: Healthy Recovery or Dead Cat Bounce?
Cosmos (ATOM) Price Prediction
Cosmos (ATOM) Price Prediction

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 88.8% 13 $23 377.12 -4.18% -4.83% $447 075 937 480 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68.4% 57 $1 842.25 -5.57% -2.51% $224 771 545 069 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92% 1 $1.000068 0% -0.03% $67 570 562 281 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 94.8% 1 $0.999915 -0.01% 0.01% $53 159 903 576 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 66% 64 $306.80 -4.80% -7.81% $49 498 485 536 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 92% 11 $0.374134 -3.28% -1.89% $18 473 812 799 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 94% 1 $1.000141 0.01% 0.02% $18 288 013 118 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 79.6% 30 $0.536096 -6.82% -1.61% $18 191 903 489 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 78% 33 $40.80 -8.29% -8.88% $14 232 149 113 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 83.2% 28 $0.081156 -7.02% 12.66% $10 767 081 650 DOGE 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 92.4% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 HEX (HEX) HEX HEX predictions 68% 66 $0.058867 -5.25% -5.51% $10 208 131 428 HEX 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 72.4% 54 $8.44 -7.64% -10.97% $9 351 379 972 DOT 7 days price change
14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 78% 45 $0.000015 -8.13% 18.92% $8 164 105 683 SHIB 7 days price change
15 Avalanche (AVAX) AVAX Avalanche predictions 69.6% 63 $25.73 -8.40% -14.00% $7 332 766 147 AVAX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.