ATOM Coin Analysis Hints a Breakout; What’s Next for Bulls?

Over the past three years, the price of Cosmos’s native cryptocurrency has steadily risen and reached its highest point of nearly $44 in January of last year. 

Despite a subsequent decline, the token has outperformed the broader cryptocurrency market throughout 2023. The coin has made a return on investment of more than 160% since June of last year

What is Cosmos?

Cosmos is a quickly growing ecosystem made up of many separate blockchains. This ecosystem, which is often called the “internet of blockchains,” is driven by the native ATOM coin of each blockchain that exists inside it. 

Cosmos Crypto’s main objective is to establish a network of networks where tokens and data may be exchanged programmatically without the involvement of a central authority.

Every new blockchain that is developed inside the Cosmos ecosystem is connected to Cosmos Hub, an ATOM-powered proof-of-stake blockchain.

How Does Cosmos Work?

The Cosmos network operates through various technological blocks that work together to achieve the desired outcome. These blocks include the PoS consensus mechanism, networking functionality, and housing applications. 

These facilitate communication between different platforms, allowing users to update their progress continuously while following the PoS consensus mechanism.

The Cosmos blockchain has three layers interconnected using open-source tools, enabling users to build blockchain applications. 

These layers include the application layer, which secures transactions and updates the network’s state, the networking layer, which permits communication between blockchains, and the consensus layer, where nodes agree on the existing system state.

However, Cosmos Crypto faces some technical challenges. For example, some blockchains are hesitant to join a network of networks, which raises questions about the project’s future. 

Additionally, Cosmos faces tough competition from other blockchain networks like Polkadot, AION, and Panta, which puts pressure on the network to make rapid advancements to attract more users.

Technical Analysis and Prediction of the ATOM Coin Price 

Currently, the price of ATOM coin is trading at $11.48 and has been on an upward trend. Those who are optimistic about its value are relying on the 50-day EMA support level, which is at $9.19. 

The ATOM token has support levels at $8.15 and $6.205, while the bullish investors’ response is at $12.057. If these investors can overcome this resistance, the price of ATOM could reach $14.49.

Conclusion 

Cosmos is a blockchain network that competes with other networks like Polkadot, AION, and Panta. Since June of last year, Cosmos has made a return on investment of over 160%.

Technical Levels

• Support Levels: $8.15 and $6.205.
• Resistance Levels: $12.057 and $14.495

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.