- Cosmos price has been in a strong downward trend.
- It has fallen in the past 11 weeks straight.
Cosmos price has tumbled in the past few months as its ecosystem has come under intense pressure. ATOM has dropped to a low of $6.46, which was the lowest level since January 2011. It has fallen by more than 86% below the highest level in 2021, bringing its total market cap has fallen to just $1.9 billion.
Why has Cosmos crashed?
Cosmos is a leading blockchain project that uses the Inter Blockchain Communication (IBC) protocol to ensure that cryptocurrencies can communicate with each other.
It also owns the Cosmos SDK, which is a platform that is used to build decentralized platforms. This is one reason why Cosmos has been in a steep downward trend.
As you recall, Terra’s ecosystem crashed in May, which helped erase billions of dollars in value. This was notable since Terra was created using the Cosmos SDK.
Other apps created in Cosmos has been in a strong downtrend lately. Some of these projects are ThorChain and Osmosis. ThorChain has crashed by more than 50% below in the past few months, bringing its market cap to about $500 million. Similarly, Osmosis has seen its price drop to about $309 million.
Learn more about how to buy Cosmos.
Cosmos price has also dropped because of the macro levels. This decline has happened because of the state of the crypto industry. In the past few months, most coins like Bitcoin, Avalanche, and Ethereum have been in a steep decline.
A key reason is that the Federal Reserve has sounded more hawkish in the past few months. It has already hiked interest rates by 0.75% this year and there is a likelihood that it will hike more in the coming months. This week, the bank is expected to hike by either 0.50% and 0.75% and continue with its quantitative tightening policy.
Cosmos price prediction
The weekly chart shows that the ATOM price has been in a strong bearish trend. It has fallen in the past 11 weeks straight and is now trading at the lowest level since January 11th. The coin has crashed below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has dropped to the oversold level.
Therefore, the outlook for the Cosmos price is weak, with the next key support level being at $5. This price is about 22% below the current level.
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