Cosmos Enables Seamless Asset and Data Exchange Between Blockchains

Cosmos is a decentralized platform that facilitates the exchange of data and tokens across different blockchains while maintaining their independence. Before Cosmos, blockchains were unable to communicate with one another, and it is essential to note that this network’s technology allows for the unrestricted exchange of assets and data across blockchains.

The project’s popularity continues to grow, but Cosmos’ future success is closely tied to how it adapts to competitors. It competes with major players in the crypto space, such as Polkadot, and regulatory challenges in the cryptocurrency market could pose risks to its future.

The ATOM token is crucial for maintaining interoperability within the broader Cosmos network and can be used for staking, holding, sending, or spending. ATOM holders also have voting power on network upgrades, with voting rights proportional to the amount of ATOM staked.

Sentiment in the cryptocurrency market has improved since mid-June 2023, and the assets in the sector are starting to recover thanks to a combination of technical and fundamental factors. Analysts believe that one key reason for this recovery is BlackRock’s application to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF, filed on July 16.

The growing speculations surrounding the approval of the first Bitcoin ETF in the U.S. have helped the crypto market rebound, positively influencing the price of Cosmos (ATOM). Cosmos (ATOM) has experienced a volatile journey this year, facing several technical and fundamental challenges. For this cryptocurrency to sustain an upward trend in the coming weeks, it needs to break above the resistance level at $10.

ATOM remains a highly risky investment, and broader market dynamics will significantly affect its price. Investors should adopt a cautious investment strategy in the coming weeks, while those in short positions should monitor Bitcoin closely, placing short trades in that area.

BlackRock’s Application Faces Uncertainty in 2023

While SEC approval for BlackRock’s Bitcoin ETF could positively affect the price of ATOM, Bitcoin, and other cryptocurrencies, it’s important to remember that the SEC has recently rejected several Bitcoin ETF applications, including those from asset managers like VanEck, Ark Invest, and Bitwise.

Bloomberg’s senior macro strategist, Mike McGlone, has warned that the cryptocurrency market may face another downturn, citing potential challenges such as a possible equity bear market and central banks’ actions.

Despite the likelihood of Bitcoin ETFs eventually launching in the U.S., McGlone cautions that BlackRock’s application may not lead to an actual launch in 2023.

“The advent of physical Bitcoin ETFs in the U.S. is a matter of time. BlackRock’s application could expedite this process, but it may not happen in 2023. Moreover, the U.S. economy could lean toward a recession in the coming months, which could further complicate the outlook for Bitcoin and the broader cryptocurrency market. Given the link between risk assets, liquidity concerns, and economic contraction, Bitcoin may gravitate towards the $20,000 support level rather than the $40,000 resistance.”

– Mike McGlone, Bloomberg

Technical Overview of Cosmos (ATOM)

Since June 15, 2023, Cosmos (ATOM) has risen about 15%, from $8.40 to a high of $9.74. The current price of ATOM is $9.62, still more than 35% below its 2023 peak from February. The chart indicates that ATOM has been in a strong downtrend since February 9, 2023, and even with the recent gains, ATOM is still under pressure when viewed from a larger perspective.

Belangrijkste ondersteunings- en weerstandsniveaus voor Cosmos (ATOM)

The chart from February 2023 highlights important support and resistance levels that traders should monitor. ATOM bulls seem more confident in recent days, and if the price breaks above the resistance level of $10, the next target could be $11.

The current support level is $9. If the price breaks below this level, it would trigger a “SELL” signal, opening the door for a drop to $8.5. A further decline below $8, which is a strong support level, could see the price dip toward $7.

Factors Supporting Cosmos (ATOM) Price Growth

The current price surge of ATOM can primarily be attributed to its alignment with the growth of Bitcoin, as is the case for many cryptocurrencies. A break above $10 would provide momentum for the bulls to maintain control over the price movement. The overall market sentiment also plays a critical role in ATOM’s price, and if investor confidence continues to rise, there is potential for further upside.

Indicators of Potential Decline for Cosmos (ATOM)

ATOM is currently trading above $9, but if it drops below this level, it could signal a potential move toward $8.5 or even the key support level at $8. The high volatility of cryptocurrencies can cause investors to sell ATOM if negative news arises—such as BlackRock’s SEC approval being denied or a major crypto firm facing bankruptcy.

Inzichten van analisten en experts

After reaching a low of $7.34 on June 10, ATOM surged to $9.74 on June 25, marking a 33% increase in a short period. The key question now is whether ATOM has the strength for further gains, which will depend on both technical factors and market sentiment.

Speculation surrounding the approval of the first Bitcoin ETF in the U.S. has certainly bolstered positive expectations for ATOM, with venture capital partner Adam Cochran suggesting that BlackRock’s offering has a “good chance” of gaining U.S. regulatory approval.

However, Mike McGlone from Bloomberg has expressed concerns that BlackRock’s application may not receive approval in 2023.

McGlone has warned that the crypto market could face another decline, highlighting potential risks such as a bear market in equities and the impact of central banks’ monetary policies. As a result, ATOM may struggle to maintain support above $9.

Disclaimer: Cryptocurrency is highly volatile and not suitable for everyone. Never invest money you cannot afford to lose. This information is for educational purposes only and should not be considered as investment advice.