Cosmos (ATOM) has advanced from $8.40 to $9.74 since June 15, 2023, and the current price stands at $9.62. But where is the price of Cosmos (ATOM) going next, and what can we expect from July 2023?
The fundamentals of Cosmos (ATOM) are strongly tied to the overall cryptocurrency market, which remains supported after BlackRock, the world’s biggest asset investment firm, announced a plan to create a bitcoin exchange-traded fund (ETF).
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.
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- 1 Cosmos allows you to exchange assets and data across blockchains freely
- 2 BlackRock’s application may not get approval in 2023
- 3 Technical analysis for Cosmos (ATOM)
- 4 Important support & resistance levels for Cosmos (ATOM)
- 5 What speaks for the rise in the Cosmos (ATOM) price
- 6 What indicates further downfall for Cosmos (ATOM)
- 7 What do analysts and experts say?
Cosmos allows you to exchange assets and data across blockchains freely
Cosmos is a decentralized network that enables blockchains to transfer data and tokens with each other while letting them retain their sovereignty. Before Cosmos, blockchains could not communicate with each other, and it is also important to mention that the technology of this network enables you to exchange assets and data across blockchains freely.
The popularity of this project is growing, but the future success of Cosmos also depends on the flexibility of its strategy in response to the competitors’ moves. Cosmos is competing with some big players in the crypto industry, like Polkadot, and we can not forget that regulations on the cryptocurrency market can be a threat to this cryptocurrency in the future.
The ATOM token plays a key role in maintaining interoperability between all zones in the wider Cosmos network and can be used for staking, sending, holding, or spending. By owning ATOM, users have the ability to vote on network upgrades, and each vote is proportional to the amount of ATOM they stake.
The sentiment on the cryptocurrency market has improved since the middle of June 2023, and the assets in the crypto space have begun to regain their footing due to a mix of technical and fundamental factors. According to analysts, one of the reasons behind this recovery is the fact that BlackRock, an investment firm that manages more than $9 trillion in assets, applied to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF on July 16.
Growing speculations around the first Bitcoin ETF approval in the U.S. helped the crypto market bounce, and this situation also positively influenced the price of Cosmos (ATOM). Cosmos (ATOM) has had a volatile journey this year, facing numerous technical and fundamental challenges, and it is crucial for this crypto to increase above the resistance level that stands at $10 in order to sustain the upward trend over the upcoming weeks.
ATOM is a highly risky investment, and the wider dynamics of the cryptocurrency market play an important role in determining the price of ATOM. Investors should continue to take a defensive investment approach in the weeks ahead, while “short” traders should keep Bitcoin on their watchlist while placing a short position toward the area.
BlackRock’s application may not get approval in 2023
The SEC approval for BlackRock would certainly positively influence the price of ATOM, Bitcoin, and many other cryptocurrencies; still, investors should keep in mind that the U.S. Securities and Exchange Commission has rejected all Bitcoin ETF applications recently, including those from asset managers like VanEck, Ark Invest, and Bitwise.
Bloomberg’s senior macro strategist, Mike McGlone, has cautioned that the cryptocurrency market may slide again, and he highlighted the potential challenges the cryptocurrency market could encounter, including a possible equity bear market and the watchful eye of central banks.
Although the advent of physical Bitcoin ETFs in the United States is deemed inevitable, Mike McGlone is cautious that BlackRock’s application, which has expedited the process, may not lead to an actual launch in 2023.
“Physical Bitcoin ETFs in the U.S. are a matter of time, we believe. BlackRock’s application to start such a fund appears to have expedited this process, but a launch may not come in 2023. At the same time, the U.S. economy might lean towards recession in the coming months, further complicating the outlook for Bitcoin and the cryptocurrency market. Drawing attention to the relationship between risk-asset performance, negative liquidity, and economic contraction, Bitcoin will likely gravitate towards the $20,000 support level rather than the $40,000 resistance level.”
– Mike McGlone, Bloomberg
Technical analysis for Cosmos (ATOM)
Cosmos (ATOM) has advanced approximately 15% since June 15, 2023, rising from $8.40 to a high of $9.74. The current price of ATOM stands at $9.62, which is still more than 35% off from its 2023 highs that were registered in February. The chart below shows that ATOM has been moving in a strong downtrend since February 09, 2023, and even with the current jump, ATOM remains under pressure when we look at a “bigger” picture.
Important support & resistance levels for Cosmos (ATOM)
On this chart (the period from February 2023), I marked important support and resistance levels that can help traders to understand where the price could move. ATOM bulls seem to be feeling more confident last several days, and if the price advances above the resistance level at $10, the next target could be $11.
The current support level is $9, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $8.5. If the price drops below $8, which represents a strong support level, the next target could be located around $7.
What speaks for the rise in the Cosmos (ATOM) price
The current ATOM price surge is mainly because it has been following the growth of Bitcoin, just like the rest of the cryptocurrency market. A move above $10 would be beneficial for the bulls to remain in control of price movement. The overall sentiment on the cryptocurrency market plays a very important role in ATOM’s price trajectory, and if investors regain confidence further, an upside potential could benefit ATOM even more.
What indicates further downfall for Cosmos (ATOM)
The price of ATOM is currently trading above $9, but a break below this level would indicate that ATOM could probably test the price level at $8.5 or even the important support level that stands at $8. The highly volatile nature of the cryptocurrencies may scare investors again to sell ATOM if some negative news happens in the cryptocurrency market – like BlackRock didn’t get the SEC approval or a prominent crypto firm going bankrupt.
What do analysts and experts say?
From a recent low of $7.34 on June 10, ATOM jumped to a high of $9.74 on June 25, an 33% gain within a short time. The main question is, does it have more bullish strength left, which depends on both technical and fundamental factors.
Growing speculations around the first Bitcoin ETF approval in the U.S. is certainly positive news for ATOM, and according to Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, BlackRock’s offering has “good odds” of getting U.S. regulatory approval.
The SEC approval would certainly positively influence the price of ATOM and many other cryptocurrencies; however, Bloomberg’s senior macro strategist Mike McGlone is worried that BlackRock’s application may not get approval in 2023.
Mike McGlone has cautioned that the cryptocurrency market may slide again, and he highlighted the potential challenges the cryptocurrency market could encounter, including a possible equity bear market and the aggressive monetary policies of central banks. Because of this, ATOM might have a hard time holding above the current support level, which stands at $9.
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.