Frax Finance Partners with Cosmos
Cosmos is a decentralized network that facilitates communication and transactions between blockchains, allowing them to remain independent. Prior to Cosmos, blockchains lacked interoperability, and this technology enables the seamless exchange of assets and data across multiple blockchains.
Cosmos utilizes the Inter-Blockchain Communication (IBC) protocol, which enables the transfer of data and assets between blockchains within the Cosmos network, as well as with external blockchain networks.
Cosmos is gaining traction by supporting various applications like DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and supply chain management. Recently, Frax Finance has expanded its reach by integrating with Cosmos through a partnership with Noble.
This collaboration will make Frax’s stablecoin, FRAX, and its staked version, sFRAX, available within the Cosmos ecosystem, which connects approximately 80 blockchains. This is a major step for Frax Finance, as it broadens the use of its stablecoin beyond Ethereum.
Sam Kazemian, founder of Frax Finance, emphasized the importance of this move, stating, “Bringing native FRAX issuance to Cosmos has been a priority for some time, and we are thrilled to announce Noble as our issuance partner. We look forward to FRAX and sFRAX being available and are excited by the potential innovative use cases.
Bears Continue to Dominate Price Movements
In the first week of March 2024, ATOM had a strong rally, gaining nearly 30% from March 01 to March 07. However, since then, ATOM has lost significant value, and bearish momentum continues to drive its price movements. It’s important to understand that Cosmos (ATOM) remains a volatile investment, and its price can fluctuate sharply in a short amount of time, potentially leading to substantial gains or losses.
Thorough research is crucial, and investors should only invest what they can afford to lose. Some analysts suggest that Bitcoin could experience a further downtrend in the coming weeks. Given the historical correlation between Bitcoin and ATOM, a Bitcoin drop would likely negatively affect Cosmos and the broader cryptocurrency market.
Fred Thiel, CEO of Marathon Digital, mentioned in a recent Bloomberg interview that the price impact of the upcoming Bitcoin halving event is already factored into the market to some extent, and he doesn’t expect significant price movements. Additionally, economists are forecasting that central banks, especially the Federal Reserve, may keep interest rates at restrictive levels for longer, possibly triggering a recession that could negatively affect financial markets.
Technical Analysis for Cosmos (ATOM)
ATOM has declined from $14.50 to $7.25 since March 07, 2024, and is currently priced at $8.21. The trendline marked on the chart indicates that as long as ATOM remains below this line, a trend reversal seems unlikely, and the price remains in the “SELL-ZONE.”
Key Support & Resistance Levels for Cosmos (ATOM)
On the chart (since November 2023), important support and resistance levels have been highlighted to help traders assess potential price movements. ATOM is still under pressure, but if the price surpasses $10, the next resistance target is $11. Currently, the support level is at $8. If the price breaks this level, it would signal a “SELL” and lead to a possible decline towards the next support level at $7.
Factors Supporting a Rise in Cosmos (ATOM) Price
Cosmos is experiencing growing interest, especially with Frax Finance integrating into the Cosmos ecosystem through a partnership with Noble.
However, the upside potential for ATOM seems limited in the short term. Still, if the price moves above $10, the next resistance could be at $11. Traders should note that ATOM’s price is often correlated with Bitcoin’s movements. If Bitcoin’s price rises above $70,000 again, ATOM could see an increase in its price as well.
Indicators Pointing to a Further Decline for Cosmos (ATOM)
There has been a noticeable decline in whale transactions for ATOM recently, signaling a lack of confidence among large investors in the short-term price outlook. If whales continue to divert their funds into other assets, ATOM could experience a more significant downturn in the coming weeks.
The downfall of ATOM can also be driven by factors such as market sentiment, regulatory changes, technological advancements, and broader macroeconomic conditions. While ATOM’s price is currently above the $8 support level, a drop below this threshold would indicate a further decline, with the next support level at $7.
Inzichten van analisten en experts
Similar to many other cryptocurrencies, Cosmos (ATOM) remains under pressure after Bitcoin’s price fell below $65,000 due to escalating geopolitical tensions in the Middle East, particularly following Iran’s attack on Israel.
Many analysts believe that Bitcoin could continue to experience downward momentum, which would likely impact the price of ATOM and the broader crypto market. Analysts also note that a slowdown in market inflows and reduced trading activity are negative factors that could further affect ATOM’s price in the near future.
The macroeconomic landscape remains uncertain, with major central banks continuing their efforts to combat inflation. Cryptocurrencies, as risk-on assets, could face challenges in such an environment. The U.S. Federal Reserve is expected to maintain interest rates above 5%, potentially leading to a recession that could harm corporate earnings and financial markets.
Cryptocurrencies could be particularly vulnerable during these uncertain times, and investors should be prepared for possible further declines.
Disclaimer: Cryptocurrencies are highly volatile and not suitable for all investors. Never invest more than you can afford to lose. The information provided is for educational purposes only and should not be considered as investment advice.
