Connect with us

Altcoins

What ATOM’s recent price performance means for its investor class

Published

on

Source: Unsplash


ATOM has maintained an overall bullish performance since mid-June and is among the best performing cryptos over the last 3 months. It has continued in the same vein over the last 7 days, following which it rallied by more than 25%.

ATOM’s bullish performance in the last 7 days came after it managed to bounce back from its ascending support line. The latter is part of the ascending price channel in which it has been trading since it bottomed out in mid-June. Despite its upside, however, ATOM might be due for a pullback. This may be the case, especially given that it was trading within a key resistance level at press time.

ATOM tested its press time resistance zone in mid-May after the hard crash during the same month. It was unable to push past this level on 24 and 25 August. The alt’s price has experienced resistance at the same price level for the last 4 days.

Can ATOM bulls overcome the psychological sell pressure?

ATOM’s press time price level suggested that there is a greater probability of a short-term bearish retracement. Despite this, ATOM’s sell pressure has remains low. This might have something to do with the fact that the Cosmos network is redesigning its delegation strategy. There is a potential possibility that it might positively affect demand, especially if the number of validators increases.

Cosmos’s development plans underscore ATOM’s healthy long-term outlook. In fact, the blockchain network has maintained healthy development activity over the last 30 days.

Some of the upcoming developments include the integration of Cosmos’s IBC with the Polkadot network. One of the potential implications will be wider demand for DOT through its expanded scope. Cosmos will also integrate with the Ethereum Beacon chain once the Ethereum 2.0 Merge is complete.

Conclusion

The Cosmos network is set for a lot of development activity, especially those that involve integration with other blockchain networks. Most of these developments might end up having a positive influence on ATOM’s demand and thus, potentially affecting its price action.

Investors should also note that the cryptocurrency is still heavily discounted, despite its recent upside. On the other hand, a potential retracement might undo some of its upside, especially if the market enters another major sell-off phase.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.