- Cosmos price has been in a strong bearish trend lately.
- The drop is in line with other cryptocurrency prices.
- It is also because of the challenges in Terra’s ecosystem.
The Cosmos price is crawling back after crashing to the lowest level since August 2021. ATOM, its native token, is trading at $14.55, which is slightly above this week’s low of $12. It remains about 68% from its all-time high, bringing its total market cap to about $4.3 billion.
Terra challenges continue
Cosmos is a leading blockchain platform that plays a pivotal role in the industry. It uses the Inter-Blockchain Communication (IBC) protocol to ensures that cryptocurrencies can communicate with one another.
It also has the Cosmos SDK, which is a fast-growing platform for blockchain developers. In the past few months, it has been used to build some of the biggest projects in the industry. Its notable projects are Terra, ThorChain, and Osmosis.
In addition to the broad crypto sell-off, the ATOM price has declined sharply because of the challenges happening in Terra. In the past few days, Terra’s USD stablecoin has lost its peg and moved sharply below $1. At the time of writing, the coin is trading at $0.90, which is lower than the required amount of $1.
The collapse of Terra UST came a few months after Neutrino, a stablecoin built using the Waves blockchain lost its peg as well. It also came a few days after Tron launched USDD, a stablecoin that has a close resemblance to UST. The USDD stablecoin has soared to over $256 million in about a week.
Therefore, the Cosmos price is bouncing back as investors buy the dip considering that it was off by about 70% from its all-time high. Also, there are hopes that the Terra USD crisis will be resolved soon.
Further, investors expect that the recent Rho upgrade will lead to more adoption. This upgrade allows the Cosmos Hub to be a controller chain.
Cosmos price prediction
The four-hour chart shows that the ATOM price formed a doji pattern. In price action analysis, a doji is usually a bullish sign. It remains significantly below the important support at $20.13, which was the lowest level on December 16th. This price was also the neckline of the double-top pattern that happened in 2021 and 2022,
Therefore, despite the doji pattern, the coin will likely continue falling as bears target the next key support level at $10.
How to buy Cosmos in 2022
Cosmos is one of the most well-known projects today, sitting in the top 25 of all cryptocurrencies. Due to its popularity, Cosmos is available on most crypto brokers, P2P, and exchanges. If you would like to learn more, take a look our guide on how to buy Cosmos.
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