Cosmos (ATOM) has advanced from $3.66 to $4.73 since September 08, 2024, and the current price stands at $4.55.
This bullish trend implies intense market purchasing pressure and suggests traders are currently bullish on Cosmos’s (ATOM) prospects.
But where is the price of Cosmos (ATOM) going next, and what can we expect from the rest of September 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.
Go directly to
- 1 Data and token transfers between blockchains
- 2 The Federal Reserve’s decision gave cryptocurrencies a boost
- 3 eToro experts speaks
- 4 Technical analysis for Cosmos (ATOM)
- 5 Important support & resistance levels for Cosmos (ATOM)
- 6 What speaks for the rise in the Cosmos (ATOM) price
- 7 What indicates the downfall of Cosmos (ATOM)
- 8 What do analysts and experts say?
Data and token transfers between blockchains
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.
Scalability is another standout feature of Cosmos, thanks to its unique consensus algorithm called Tendermint. Unlike traditional proof-of-work (PoW) systems like Bitcoin, Tendermint is designed to be both more energy-efficient and scalable, allowing Cosmos to handle larger volumes of transactions with greater efficiency.
The ATOM token plays a crucial role in the Cosmos network, enabling smooth communication between all the zones in its vast ecosystem. It can be used for staking, transferring, holding, or spending. By holding ATOM, users gain the ability to vote on important network upgrades and decisions, with the influence of their vote determined by how much ATOM they have staked.
The Federal Reserve’s decision gave cryptocurrencies a boost
Like many other cryptocurrencies, Cosmos (ATOM) remains supported after Bitcoin’s price advanced above $64,000 and in less than several days ATOM has increased nearly 30% of its value. The performance of digital assets shocked market watchers as different products witnessed a significant second week of positive inflows.
Many crypto analysts link this recent surge to the Federal Reserve’s decision to begin its monetary easing cycle last week, along with its forecast of further interest rate cuts in the coming quarters. The Federal Open Market Committee lowered the benchmark Fed funds rate to a range of 4.75% to 5%, the first reduction since March 2020, signaling confidence in the progress made against inflation.
Fed officials are confident that inflation is no longer a major threat, allowing them to support other economic objectives, like boosting employment or encouraging investment. This decision signals the central bank’s confidence that the economy can handle lower borrowing costs without overheating. It also reassures investors that economic growth can continue without triggering runaway inflation, which in turn supports further gains in the stock market.
Lower interest rates also make borrowing cheaper for consumers, cutting costs on things like mortgages, car loans, and credit card debt. This encourages more spending, which boosts economic growth and helps businesses’ profits, ultimately driving gains in both stock and cryptocurrency markets.
eToro experts speaks
Bret Kenwell, investment analyst at eToro, said:
“Markets are acting well to last week’s messaging from the Fed. They wanted to hear we weren’t falling into recession which Chair Powell reassured that the economy is on good footing. A soft landing is still in play; that’s still the default expectation. However, there’s still clearly some concern that the labor market is going from a period of softness to weakness.“
The Fear & Greed Index, a widely used tool for assessing market sentiment in the cryptocurrency sector has increased in the period of the last several days reflecting strong investor interest and confidence.
In the weeks to come, Cosmos (ATOM) will remain significantly influenced by the general situation in the cryptocurrency and hence, engaging in investments related to ATOM demands deliberate consideration. Undertaking comprehensive research and evaluating one’s risk tolerance are fundamental measures before committing to any investments within this sphere.
Technical analysis for Cosmos (ATOM)
ATOM has advanced from $3.66 to $4.73 since September 08, 2024, and the current price stands at $4.55. Traders are currently bullish on Cosmos’s (ATOM) prospects but market participants should keep in mind that the ATOM could easily fall below current price levels.
In the chart below, I marked the important resistance level, and as long the price of ATOM is below this level, we can’t talk about a trend reversal, and the price of ATOM remains in the SELL-ZONE.
Important support & resistance levels for Cosmos (ATOM)
I’ve highlighted key support and resistance levels on this chart, starting from February 2024, to help traders gauge potential price movements.
On a broader time frame, ATOM still appears to be under pressure. However, if the price breaks above $6, the next key resistance could be around $8. On the downside, there’s strong support at $4. Should the price dip below this level, it would likely trigger a sell signal, opening the door for a drop toward $3.5.
What speaks for the rise in the Cosmos (ATOM) price
Traders are currently bullish on Cosmos’s (ATOM) prospects and if the ATOM trading volume continues to rise, then the buying pressure can push the price toward new highs.
The Federal Reserve’s decision gave cryptocurrencies a boost by lowering interest rates, which made riskier assets like digital currencies more attractive to investors. With borrowing costs reduced, there’s more liquidity in the market, encouraging investments in assets like crypto as people seek higher returns.
What indicates the downfall of Cosmos (ATOM)
Cosmos is focused on interoperability between blockchains, but rising competition from other projects like Polkadot, Avalanche, or Ethereum Layer 2 solutions could overshadow Cosmos if these projects provide better solutions.
The downfall of ATOM can also be influenced by a wide range of other factors, including market sentiment, regulatory developments, and macroeconomic trends. The price of ATOM is currently above $4 support, but a break below this level would indicate that ATOM could test another strong support level that stands at $3.5.
What do analysts and experts say?
Like many other cryptocurrencies, Cosmos (ATOM) remains supported after Bitcoin’s price advanced above $64,000 and in less than several days ATOM has increased nearly 30% of its value. Crypto analysts link this recent surge to the Federal Reserve’s decision to begin its monetary easing cycle last week, along with its forecast of further interest rate cuts in the coming quarters. The Federal Reserve’s decision to lower interest rates provided a boost to cryptocurrencies, making riskier assets like digital currencies more appealing to investors.
With borrowing costs down, market liquidity increases, prompting investors to seek higher returns in assets such as crypto. Crypto analysts believe that if Bitcoin can maintain its upward momentum in the coming weeks, it will likely have a positive impact on the price of ATOM and the broader cryptocurrency market.
