Market Outlook: Breakout or Correction Ahead?


💡Tryout HIVEOS Entirely Free:

After experiencing a bearish trend on April 17, 2023, that dropped the asset to a low of $10.12 from $12.88, Cosmos (ATOM) has managed to recover slightly.

Between February 8 and May 17, ATOM witnessed a significant decline of 32.89%, reaching a low point of $10.175 on May 9. The current month has, however, brought a surge in demand for Cosmos (ATOM), leading to a remarkable price performance. 

What’s Ahead For Cosmos (ATOM)?

According to data, ATOM experienced a substantial price decline, reaching $10.73, a 0.95% decrease within the last 24-hour trading period.

Related Reading: Will Dogecoin (DOGE) Break Free From Limbo? Market Awaits Bullish Catalyst

Notably, the 24-hour trading volume is up by 9.04%, rising to $85 million, indicating that the market activities around ATOM are increasing. More buyers and sellers are actively participating in trading ATOM. 

Also, an increase of more than 9% signifies potential price volatility, which might influence the price of ATOM. But the current market sentiment of ATOM is bearish as its Fear and Greed Index shows 28, fear. 

This indicates a potential downtrend as investors and traders fear entering the market. This may also lead to high sell pressure from the investors. Based on the Fear & Greed Index reading, the market may likely experience some price correction if the bears maintain this momentum in the coming days.

Cosmos (ATOM) Technical Analysis

The 200-day and 50-day Simple Moving Averages (SMAs) currently exceed the ATOM/USDT trading pair price. This indicates that the market is on a bearish trend in longer and shorter timeframes.

Also, this means that the selling momentum is stronger than the buying. However, if the bulls increase the buying pressure, some price changes might occur in a few days.

The Relative Strength Index shows 44.91, meaning there’s market indecision between buyers and sellers. The market in a neutral zone indicates low pressure from buyers and sellers.

Cosmos (ATOM) Price Trends Upwards: A Potential Breakout or Impending Correction?
ATOM price falls on the chart l ATOMUSDT on Tradingview.com

However, the MACD is above the signal line depicting a potential bullish momentum for ATOM. Also, the histogram is currently above the zero level, validating the bullish sentiment. 

Latest Development To Spike Network Utility

The ecosystem recently announced the adoption of its first Cosmos native shared security model by a widely known Permissionless CosmWasm platform called Neutron

The Replicated Security brings a new era of utility to the network. It will also help Cosmos Hub to offer security to new projects launching as Hub-secured consumer chains.

The consumer chain will share its revenue with the Hub in exchange, and will also be shared with ATOM validators.

Neutron being the first platform to pioneer Cosmos Hub Replicated security, will enjoy instant access to the multi-billion dollar economic security of the Hub.

This recent development could attract more investors, traders, and institutions into the network, driving the demand for ATOM significantly over time.

featured image from Pixabay and chart from Tradingview





Source link

You May Also Like