Cosmos price prediction: cup and handle points to a major pullback
The Cosmos price jumped to an all-time high as demand for the cryptocurrency jumped. The price of an ATOM jumped to $37, bringing its gains from July to more than 365%. This makes it one of the best performing altcoins in the market.
What is Cosmos and ATOM?
Cosmos is a leading blockchain project built on the Byzantine Fault Tolerance (BFT) and proof-of-stake technologies. It is a decentralized network of independent parallel chains, which help blockchain projects scale and interoperate with each other. As a result, the network helps blockchains scale their usability, boost their sovereignty, and become more scalable.
Cosmos has experienced exponential growth in the past few years. Today, the network has seen the number of apps grow to more than $150 billion. Some of the most popular applications secured by the Cosmos ecosystem are Binance Coin, OKExChain, Thorchain, TerraUSD, and Persistence, among others.
ATOM, on the other hand, is the native cryptocurrency for Cosmos’ ecosystem. It is mostly used to facilitate transactions in the network and for governance purposes. It can also be staked just like other cryptocurrencies.
The Cosmos price is rising as more investors become aware of the network. At the same time, many investors are cheering the recent introduction of the Gravity DEX protocol to the Cosmos Hub protocol. This protocol’s goal is to make it relatively easy for anyone to participate in the DeFi industry. For example, the average fee in the ecosystem is about $0.08, which is substantially lower than the average amount in most DeFi platforms.
At the same time, the overall volume of Cosmos has also risen. Data compiled by CoinMarketCap shows that the volume of Cosmos traded on Sunday was worth more than $2.4 billion, which was about 0.33 of its total market capitalization. A day before, the volume was $1.5 billion or 2.5 of the total market capitalization.
Cosmos price prediction
The daily chart shows that the ATOM price has been on a sharp bullish trend recently. The coin managed to move above the key resistance level at $32.30 during the weekend. This was an important level since it was the previous all-time high.
Cosmos price has also formed a cup and handle pattern, with 432.30 being its upper part. It remains slightly above the 25-day and 50-day exponential moving averages (EMA). Therefore, there is a likelihood that the coin will have a major pullback as it forms the handle section of the pattern. This will likely see it drop to about $20.