Cosmos Is Caught in a No-Commerce Zone

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Key Takeaways

  • ATOM’s value motion is getting squeezed inside a good vary.
  • There aren’t any clear indicators concerning the route of the token’s development. 
  • A decisive shut outdoors the $26 to $31 vary ought to resolve Cosmos’ ambiguity. 

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Cosmos’ ATOM token continues to consolidate with out offering any clear indicators of the place it would head subsequent. 

Cosmos Stays Stagnant

Cosmos might have generated a major quantity of hype this 12 months, however ATOM continues to be buying and selling sideways.

The native token for the so-called “Web of Blockchains” has seen its value endure a squeeze after a chronic stagnation interval, signaling {that a} spike in volatility is underway. 

Cosmos has been touted as one of the crucial promising ecosystems throughout the crypto group in current months, with rising curiosity in tasks like JUNO and Osmosis. Nonetheless, because the starting of the 12 months, ATOM has been caught inside a $5 value vary. From a technical perspective, it seems that the 100-day transferring common at $26 on the three-day chart has been performing as assist, whereas the 50-day transferring common at $31 serves as resistance. 

So long as the token continues buying and selling in between each ranges, ATOM appears caught in a no-trade zone. Nonetheless, a decisive three-day candlestick shut outdoors the 100-day and 50-day transferring common ought to decide the place its value will head subsequent. 

Supply: TradingView

Zooming out on the three-day chart reveals that ATOM’s governing sample is a parallel channel that developed in early September 2021. This technical formation offers potential targets for the place ATOM might commerce after breaking out of the no-trade zone. 

A bullish impulse that sends Cosmos above $31 might have the power to see it rise in the direction of the channel’s higher trendline at $44. But when promote orders improve and the $26 degree is misplaced as assist, it might dive to the channel’s decrease boundary at $21. 

Given the anomaly that ATOM at present presents, it’s doubtless that many merchants will stay on the sidelines, ready for affirmation earlier than getting into any lengthy or brief positions. 

Disclosure: On the time of writing, the writer of this piece owned BTC and ETH.

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