The high season of altcoins continues, and there are already several that have surpassed Bitcoin if we talk about its performance in 2020. Today one of the best performing is the Cosmos cryptocurrency, ATOM label, accumulating gains of 24% during the last 24 hours.
It is a platform specially designed for communication between chains, looking for a way to improve interoperability between them, using the advantages of Tendermint and the Blockchain Intercommunication Protocol.
In short, the Cosmos network is an Internet of Blockchains.
Today, thanks to a market capitalization in excess of $ 1 billion, cryptocurrency ATOM is ranked number 20 in the crypto ecosystem. Its daily volume is currently $ 350 million.
With a price of $ 5.32 per unit, the return on investment for those who entered its birth is negative, specifically -17.43%. So its history has not been the best, if we only talk about the development of its price.
Despite this, the rise that is happening is making the bullish vision return in the Cosmos cryptocurrency. And to find out where it may be heading, we prepared the technical analysis you find in the paragraphs below.
Technical analysis of the price of the cryptocurrency Cosmos (ATOM)
We are about to close a great week in the crypto ecosystem, and the cryptocurrency ATOM has been no exception.
From the weekly chart, Cosmos vs. US dollar, we can see a strong bull candle, capable of resuming the uptrend in the medium term.
The 8 EMA and 18 SMA moving averages are following this direction, and recently functioned as dynamic supports.
Currently, the price is entering an important supply zone, left with the maximums reached in 2020.
At the moment the odds are in favor of a break from this resistance level. If it manages to cross it, the terrain will be clear until the zone of all-time highs, around $ 7.
Short term trend
In the daily time frame is where you can see the great bullish power of today.
The engulfing candle that is about to close is an excellent signal for buyers, and even though this is no longer a good time to buy (unless you want to take the risk of a pullback), it’s hard to think that the momentum that we are witnessing must end soon.
The 8 EMA and 18 SMA moving averages are following this bullish direction, and may function as dynamic supports if the price looks to pull back before continuing the previous trend.
The 200-day SMA is also currently bullish, supporting the great recovery of the Cosmos cryptocurrency, from its all-time low reached last March.
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