Cosmos will get EVM affinity with the help of CantoPublic.
The weighted sentiments against ATOM declined while its volatility increased, suggesting that buying ATOM could be riskier than usual.
Investors witnessed a massive hike, and their new project could have triggered this.

Cosmos’s new update hints about the expansion in the area of DeFi space. Messari’s new tweet confirmed the same regarding the update about CantoPublic and its spiking interest in DeFi.

Along with Cosmos’ growth in DeFi, the number of investors in the Cosmos network increased by about 300%. The reason behind this could be their new project called Game of Chain, launched on the 7th of November, aiming to incentivize the validators on the Cosmos network. Despite such events ATOM witnessed a sharp fall in the prices.

The Technical Tale

The prices form a bear flag, illustrating that there is still selling pressure present. However, traders are also entering long positions looking for a reversal, which forces prices to drift upward. The price bounces back from the $9.176 support level. The Bollinger bands don’t vary much showing the balanced situation. Heavy sell-offs have been balanced with a matching volume of purchases, trying to maintain the equilibrium.

The RSI indicator seems highly volatile as it moves very variably between the 70-30 level bounds, not marking any stable state, which we can name as bearish and bullish. The MACD line moves below the signal line after the bearish breakthrough, where the sellers dominate the market. The price rises sharply after the free fall.

The peephole perspective

The 4 hour window shows a parallel movement of the price floating around $12 level. The RSI indicator moves closer to the 50-mark after bouncing back from the oversold zone. The MACD line is seen undergoing a slight bullish-breakthrough with encouraging sales volume at current prices.

Conclusion

The market seems to climb up for ATOM with the hope given by their new project. It’s currently highly volatile, but this indicates that Cosmos is trying to land back on its feet and bring back the normalcy and a positive perspective of the stakers.

Technical levels

Support levels: $9.18 and $11.62

Resistance level: $14.64 and $15.57

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Source: https://www.thecoinrepublic.com/2022/12/25/atom-is-in-a-freefall-will-it-rise-atoms-damage-control/