Cosmos in a correction after a day of consolidation.
Bearish volumes are still low.
Cosmos is heavily reliant on overall market trends.
Cosmos (ATOM/USD) is turning bearish again after trading in a range for the past 24-hours. This is pretty much in line with the broader market. Over the last 4-hours, Bitcoin has been losing momentum at a key resistance level, and Cosmos, like other altcoins, is following suit.
ATOM bulls losing steam
Cosmos is a cryptocurrency that powers an ecosystem of blockchains that can easily interact with each other. The goal is to create the world’s first Internet, made out of blockchain technology. It will do this by creating connected networks through which all manner of info can be shared across decentralised systems without reliance on third parties like apps stores or search engines.
Cosmos use case is becoming clearer to investors, and the same has reflected in ATOM’s price all through 2022. While the cryptocurrency market started 2022 in the red, ATOM is one of the better performers of the major cryptocurrencies.
That said, in the past week, Cosmos has taken a hit as Bitcoin’s correction continues to weigh in on the broader cryptocurrency market. But with its fundamentals rock-solid, ATOM is one of the cryptocurrencies that hold the most potential once the bear run comes to an end.
Cosmos price prediction
On the 1-hour chart, Cosmos is turning bearish. After trading in a range above the 50.0% Fibonacci support at $34.68, bears have taken control. The increase in bearish sentiment has seen Cosmos breach the $34.68 support, but volumes are still pretty low.
If bearish sentiment increases and ATOM tests and pushes through the 38.2% Fibonacci support at $32.93, ATOM could easily trade below $30 in the short term.
On the flip side, if bulls manage to push Cosmos back through the 50.0% Fibonacci resistance at $34.68, and breaches the 61.8% Fibonacci resistance at $36.46, then ATOM could trade above $40 in the course of the week.