Cosmos Price Cup & Handle Points to a 30% Launch
The Cosmos price has almost defied gravity in the past few weeks. The price of its token, ATOM, is trading at $38.60, which is a few points below its all-time high of about $46. It has jumped by over 390% from its lowest level in June.
Cosmos is a leading blockchain platform that plays an important role in the industry. The network solves a challenge that has existed in the blockchain industry. This challenge comes from the fact that cryptocurrencies are built using different architectures. As such, to a large extent, these parallel universes cannot communicate with one another.
Cosmos solves this challenge through its Inter Blockchain Communication (IBC) technology. Apps in its ecosystem can communicate with each other closely. Today, the network is used by some of the leading blockchain platforms like Binance Coin, Crypto.com Coin, and KuCoin Token.
The Cosmos SDK is a key part of its network. It is a trusted framework for building high-performance blockchain networks. Indeed, it is the same technology that has been used to build Terra, the 9th biggest cryptocurrency in the world. Also, it was used to build Osmosis, a leading DeFi platform in the world.
ATOM is the native token for the Cosmos ecosystem. It has a total market capitalization of more than $11 billion. It is the 17th biggest coin in the world.
Cosmos price prediction
The daily chart shows that the ATOM price jumped sharply this year and tested its all-time high of about $46. A closer look shows that the Cosmos price has formed a cup and handle pattern. In price action analysis, this is usually a sign of bullish continuation pattern. It is currently forming a handle section of the pattern.
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Another bullish factor is that the Cosmos price has moved above the 25-day and 50-day moving averages. Therefore, I suspect that the price will have a bullish bounce in the coming weeks. If this happens, the next key resistance level to watch is about $50, which is about 30% above the current price. This view will be invalid if the price drops below $30.
