Cosmos (ATOM) has been a top-performer and exhibited a bullish fervor for the past couple of months, or since June.
ATOM up by 25% in the past seven days
Cosmos network collaborations such as with Polkadot is likely to increase demand
ATOM price up by .04% as of press time
ATOM’s bullish streak has lingered on for the past week, showing a price pump of over 25%.
The crypto rallying for the past week happened after its successful rebound from the ascending support line. Despite the bullish momentum, ATOM could potentially go through a slippery slope.
This may happen due to the fact that the coin is currently trading around its key resistance level.
The crypto was able to test its key resistance level in May following an eclipse or crash. Cosmos failed to move past the key resistance zone present on August 24 and 25; respectively.
More so, ATOM has also experienced some hurdles present at that price level as seen in the past four days.
ATOM May Swerve Towards Bearish Detour
According to CoinMarketCap, ATOM price is up by 0.04% or trading at $12.83 as of this writing. ATOM seems to be swerving up and down validating a bearish detour.
As of press time, ATOM is looking like it’s heading towards a bearish retracement. Further, the altcoin’s selling pressure is considerably low which could be due to Cosmos’ overhaul of its delegation strategy.
The low selling pressure can also impact demand, especially with a spike in the number of validators.
On the brighter side, the ongoing development of Cosmos doesn’t seem to stain or dissuade ATOM’s optimistic outlook. Interestingly enough, the Cosmos network was able to maintain a positive development activity in the past month.
Cosmos Network Integrations To Boost Demand
There are exciting developments underway such as the upcoming integration of Cosmos and Ethereum Beacon chain and the fusion of Polkadot and Cosmos’ IBC.
These partnerships or collaborations are bound to ramp up the demand for DOT. Further, the Cosmos network will be integrating with a number of blockchain networks which can predictably increase the demand for ATOM plus optimize its price action.
Additionally, investors ought to take advantage of the fact that despite its ongoing rally, the altcoin is still low-priced. Investors should also note that the cryptocurrency is still heavily discounted, despite its recent upside.
However, a retracement is possible despite its upswing mainly due to increased selling activity.
Crypto total market cap at $954 billion on the daily chart | Source: TradingView.com
Featured image from UseTheBitcoin, chart from TradingView.com