Cosmos facilitates communication and transactions between blockchains
Cosmos is a decentralized platform that allows blockchains to transfer data and tokens between one another while maintaining their independence. Prior to Cosmos, blockchains could not directly interact with each other. Additionally, the network’s technology allows for seamless asset and data exchange across different blockchains.
Cosmos uses the Inter-Blockchain Communication (IBC) protocol, which facilitates the transfer of data and assets between blockchains within the Cosmos Network and beyond, even to other blockchain networks. Scalability is another key feature of Cosmos, which utilizes a unique consensus algorithm, Tendermint, designed to be more energy-efficient and scalable than traditional proof-of-work (PoW) systems such as Bitcoin.
The ATOM token is central to maintaining the interoperability across the Cosmos network and can be used for staking, transferring, holding, or spending. By holding ATOM, users gain voting power on network upgrades, with the weight of each vote proportional to the amount of ATOM staked.
The project is gaining popularity and supports a variety of use cases such as DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and supply chain management. However, Cosmos’ future success will also depend on its ability to adapt to competitor actions, and investors should keep in mind that the cryptocurrency landscape is rapidly evolving.
Cosmos faces competition from major players in the crypto space, like Polkadot, and regulatory actions within the cryptocurrency market could pose a threat to its future growth.
SEC’s critical decisions expected in October
With October approaching, crypto investors are focusing on the U.S. Securities and Exchange Commission (SEC) as it will be making key decisions that could greatly impact the crypto market. By October 13, the SEC is expected to decide whether or not to appeal the ruling in its case against asset manager Grayscale. Additionally, October marks the second deadline for several pending Bitcoin ETF applications.
Significant dates to watch include October 16 and 17. If the SEC approves these Bitcoin ETFs, demand for Bitcoin could surge, positively influencing the price of ATOM and many other cryptocurrencies.
Cosmos (ATOM) has had a volatile year, with numerous technical and fundamental challenges, and the ongoing price decline has led some investors to question whether the token remains a worthwhile investment.
At one point, ATOM was trading above $10 (July 2023), but since then, its price has dropped, and despite recent gains, it remains in a bear market. Cosmos (ATOM) is still a high-risk investment, and investors should exercise caution when considering this cryptocurrency.
Technical overview for Cosmos (ATOM)
ATOM has decreased from $15.46 to $6.28 since February 8, 2023, and the current price is $7.09. The chart below shows a trendline, and as long as ATOM’s price remains below this trendline, a trend reversal is unlikely, meaning the price remains in the SELL-ZONE.
Key support & resistance levels for Cosmos (ATOM)
The chart from March 2023 highlights key support and resistance levels that can help traders predict the potential price movement. ATOM remains under pressure, but if the price climbs above $7.5, the next resistance target could be $8.
A breakthrough of the $10 resistance level would favor the bulls and help maintain upward momentum. The crucial support level is $6, and if this level breaks, it would signal a “SELL” signal, opening the way for the next support at $5.
What supports the potential rise of Cosmos (ATOM) price
The upward potential for ATOM may be limited in the coming weeks, but if the price rises above $7.5, the next resistance target could be $8. A move above $10 would solidify the bullish outlook. The overall sentiment in the cryptocurrency market is pivotal for ATOM’s price trajectory, and if investor confidence increases, ATOM could benefit from a potential upswing.
The SEC’s decisions in October will be a key factor, with Bitcoin ETF approvals likely to drive demand for Bitcoin, which could positively impact ATOM and other cryptocurrencies.
What signals further decline for Cosmos (ATOM)
ATOM is a highly volatile and risky asset, and investors should remain cautious when dealing with this cryptocurrency. Currently trading above $7, if ATOM breaks below this level, it may test the $6.5 price point or even the crucial support at $6.
The extreme volatility of cryptocurrencies may prompt investors to sell ATOM in the event of negative news—such as the SEC rejecting Bitcoin ETF applications. Analysts are also expecting the SEC to delay its decisions on these applications, with the next decision date scheduled for next year.
Inzichten van analisten en experts
Cosmos (ATOM) has been in a downtrend since February 8, 2023, and many analysts suggest that the lack of interest from investors in accumulating ATOM implies that prices could remain low in the near term. Cosmos (ATOM) is a high-risk investment, and its price can fluctuate dramatically in a short period, offering potential for both substantial gains and losses.
It’s essential to conduct thorough research, understand the risks, and only invest what you can afford to lose when considering ATOM. Analysts also predict potential market turbulence due to concerns over a possible recession, with expectations that the U.S. central bank may maintain restrictive interest rates for an extended period, which could negatively impact risk assets like cryptocurrencies.
Disclaimer: Cryptocurrency is highly volatile and not suitable for all investors. Never invest money that you cannot afford to lose. The information provided is for educational purposes and should not be considered as investment or financial advice.
