Cosmos (ATOM) has extended its correction from the record highs. Here are the important support and resistance levels
Cosmos (ATOM) has advanced from $7.8 above $26 since the beginning of February, and the current price stands around $20.
Fundamental analysis: The risk remains high
Cosmos (ATOM) has extended its correction from the record levels registered in the third week of February, and technically looking, the price of this cryptocurrency could fall even more in the upcoming days. Even though the price has weakened, Cosmos (ATOM) remains in a bull market and enjoys interest from traders and investors.
Cosmos is a decentralized network that enables blockchains to transfer value with each other while letting them retain their sovereignty. This network’s main goal is to tackle the lack of interoperability in the market, but there is still a level of uncertainty surrounding the Cosmos project.
ATOM is the native cryptocurrency of the Cosmos network, and according to analysts, this is one of the cryptocurrencies you should definitely not ignore. ATOM price has exploded in February after the Cosmos network announced it has successfully launched the Stargate upgrade.
“Such upgrades bring significant performance improvements to blockchains built with Cosmos SDK. These include bringing so-touted 100x efficiency to the IBC protocol, a faster full node syncing process, and over 20 times faster upgrades,” Cosmos reported.
Positive news for the cryptocurrency market is that Morgan Stanley has become the first big U.S. bank that starts to offer access to Bitcoin funds to some of its clients. This could indicate that some other big banks could follow this practice and even offer funds with other cryptocurrencies.
Access to the funds will only be allowed to people who have at least $2 million in assets held by the bank. Investment firms with at least $5 million at the bank will also be eligible. In both cases, the accounts have to be at least six months old,” Morgan Stanley reported.
My opinion is that this is a very risky cryptocurrency, and if you decide to trade Cosmos (ATOM) this March, you should always use a “stop-loss” order.
Technical analysis: $20 represents a strong support level
Cosmos (ATOM) has extended its correction from the record highs registered in the third week of February, but if the price jumps again above $22, it would be a signal to buy Cosmos (ATOM).
The next price target could be around $24 or even $26; still, if the price falls below $20, it would be a firm “sell” signal, and we have the open way to $18.
Cosmos (ATOM) has extended its correction from the record levels, but this cryptocurrency continues to trade in a bull market. If the price jumps again above $22, the next price target could be around $24, but if the price falls below $20, it would be a firm “sell” signal.