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The cryptocurrency market has historically been known for its volatility, and while efforts were being made to stabilize the market, fluctuations are still expected to be a common occurrence.

Like many other cryptocurrencies, Cosmos (ATOM) remains under pressure after Bitcoin hit levels below $65,000 instigated by heightened geopolitical tensions in the Middle East, particularly Iran’s attack on Israel.

Crypto analysts agree that the crucial support level for Bitcoin (BTC) currently stands at $60,000 and if the price of the flagship crypto breaks this level we could see a significant number of liquidations worth billions on the crypto market. This situation would certainly negatively influence Cosmos (ATOM) and it’s essential to conduct thorough research, understand the risks, and only invest what you can afford to lose when considering investing in ATOM.

Liquidations happen when a trader’s position is automatically closed because they lack the funds to cover their losses. This situation arises when the market moves unfavorably for the trader, leading to a reduction in their initial margin. But where is the price of Cosmos (ATOM) going next, and what can we expect from the rest of April 2024?

Today, Crypto Lists will discuss Cosmos (ATOM) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

Frax Finance started to collaborate with Cosmos

Cosmos is a decentralized network that facilitates the transfer of data and tokens between blockchains, allowing them to maintain their independence. Prior to Cosmos, blockchains lacked the ability to communicate with each other and it is noteworthy that the technology within this network allows for the seamless exchange of assets and data across various blockchains.

To enable different blockchains to communicate and transact with each other, Cosmos uses the Inter-Blockchain Communication (IBC) protocol, which allows data and assets to be transferred between different blockchains within the Cosmos Network and even with other blockchain networks outside of Cosmos.

Cosmos is experiencing increasing traction by endorsing multiple applications such as DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and supply chain management. According to the latest news, Frax Finance is expanding its reach by integrating with the Cosmos ecosystem through a partnership with Noble.

This move will make Frax’s stablecoin, FRAX, and its staked version, sFRAX, accessible within the Cosmos network, known for its interoperability across approximately 80 blockchains. This expansion marks a major advancement for Frax Finance, broadening the application of its stablecoin beyond its original base on Ethereum.

Sam Kazemian, founder of Frax Finance, highlighted the strategic significance of this move and pointed out the potential for greater adoption and new applications that this partnership could enable within the Cosmos community. Sam Kazemian, founder of Frax Finance, said:

“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.”

Rating: 9.33/10
Supply: 226,226,000 / 284,011,008
Release date: April 6, 2017

Description: Discover Cosmos and be part of the cryptocurrency revolution.

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.


Bears continue to control the price movement

The beginning of March 2024 has been very successful for ATOM, and the price of this crypto added nearly 30% to its value in the period from March 01 to March 07. Since then, the price of ATOM has lost significantly in value, and bears continue to control the price movement. Investors should keep in mind that Cosmos (ATOM) is a risky investment, and history has shown many times that its price can fluctuate dramatically over short periods, leading to substantial gains or losses.

It’s essential to conduct thorough research, understand the risks, and only invest what you can afford to lose when considering investing in ATOM. Negative information is that some crypto analysts think that Bitcoin could maintain a downside trajectory in the weeks ahead, and when the price of Bitcoin drops, that usually has a negative influence on the price of ATOM and on the rest of the cryptocurrency market.

Marathon Digital CEO Fred Thiel said in a recent interview with Bloomberg that the price impact of the upcoming Bitcoin Halving event is already factored into the market to a certain extent and that he does not expect positive price movements. At the same time, economists are warning that many central banks (especially the Fed) could hold interest rates at restrictive levels for longer, and because of this, they expect a recession that could hit financial markets.

Technical analysis for Cosmos (ATOM)

ATOM has weakened from $14.50 to $7.25 since March 07, 2024, and the current price stands at $8.21. On the chart below, I marked the trendline, and as long the price of ATOM is below this trendline, we can’t talk about a trend reversal, and the price of ATOM remains in the SELL-ZONE.

Technical analysis for Cosmos (ATOM)

Important support & resistance levels for Cosmos (ATOM)

Important support & resistance levels for Cosmos (ATOM)

On this chart (the period from November 2023), I marked important support and resistance levels that can help traders understand where the price could move. ATOM remains under pressure, but if the price jumps above $10, the next target could be resistance at $11. The current support level is $8, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to the next support that stands at $7.

What speaks for the rise in the Cosmos (ATOM) price

Cosmos is experiencing increasing traction and according to the latest news, Frax Finance is expanding its reach by integrating with the Cosmos ecosystem through a partnership with Noble.

However, the upside potential for ATOM probably remains limited for the upcoming weeks but if the price advances above $10, the next target could be resistance at $11. Traders should also consider that the price of ATOM is usually correlated with Bitcoin, and if the price of Bitcoin jumps again above $70,000, we can see ATOM at a higher price level than the current price.

What indicates further downfall for Cosmos (ATOM)

There has been a significant drop in the number of whale transactions for ATOM in the last several weeks, indicating that they are losing confidence in the underlying coin’s short-term price prospects. If the whales continue to reallocate funds to other investments, the price of ATOM could take an even bigger hit in the upcoming weeks.

The downfall of ATOM can also be influenced by a wide range of other factors, including market sentiment, regulatory developments, technological advancements, and macroeconomic trends. The price of ATOM is currently above $8 support, but a break below this level would indicate that ATOM could test the important support level that stands at $7.

What do analysts and experts say?

Like many other cryptocurrencies, Cosmos (ATOM) remains under pressure after Bitcoin hit levels below $65,000 instigated by heightened geopolitical tensions in the Middle East, particularly Iran’s attack on Israel.

Many crypto analysts said that Bitcoin could maintain a downside trajectory in the weeks ahead, and when the price of Bitcoin drops, that usually has a negative influence on the price of ATOM and on the rest of the cryptocurrency market. Crypto analysts also agree that a slowdown in net inflows on the cryptocurrency market and decreased trading activity are certainly negative factors for ATOM that will continue to influence the price of this cryptocurrency in the weeks ahead.

At the same time, the macroeconomic landscape remains uncertain; major central banks are still not done with bringing inflation down to their target, and risk-on assets such as cryptocurrencies could suffer in such conditions. The U.S. central bank is widely seen keeping interest rates above the 5% range for a longer time period, and some analysts are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets.

Stocks aren’t the only assets that could significantly lose their value, and investors should keep in mind that cryptocurrencies could also be in the situation to make an even bigger fall.

Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.

 

by Our Certified Author
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