What next for Cosmos after breaching the $6.7 support level?

With a significant decline from its all-time high (ATH), the current price range and market dynamics suggest a complex for Cosmos (ATOM).

With several key developments on the horizon and technical signals pointing to both risks and opportunities, understanding what lies ahead for ATOM is crucial for anyone involved in the Cosmos ecosystem.

Current ATOM price dynamics and technical indicators

At present, Cosmos (ATOM) is trading within a range of $4.65 to $5.00, showing some volatility. Notably, the token price has dropped by a whopping 90% from its ATH.

This significant decline underscores the challenges ATOM has faced, including losing the weekly bear market support level at $6.7, which further highlights its precarious situation.

The 10-day moving average stands at $4.10, while the 100-day moving average is at $5.50.

Further support levels are identified at $3.80 and $3.37, with resistance levels at $5.51 and $5.88.

These figures reveal that ATOM is still navigating a volatile price range, which has been compounded by recent bearish pressures.

The current price is around a significant weekly level, which could present a worthwhile risk for those considering a longer-term hold.

However, despite the prolonged bear market, some technical indicators suggest that there could be potential for a mid to long-term recovery.

A bearish retest of the bear market support could offer a potential 30% gain from current levels if the market conditions align favourably.

Market developments and future Cosmos prospects

Several recent developments could play a pivotal role in shaping ATOM’s future market position.

The Cosmos ecosystem has been active with noteworthy achievements, including the launch of Lava Network’s mainnet.

This platform, built using Cosmos’s SDK, has garnered significant network requests, signalling increased interest from developers and potentially bolstering the Cosmos network’s utility.

Lava is certainly on fire after its mainnet launch 🌋@lavanetxyz, powered by CosmosSDK, is providing decentralized and accountable RPCs for the Cosmos Hub.

Welcome to the interchain! ⚛️ https://t.co/9bxZZuzzux

— Cosmos Hub ⚛️ (@cosmoshub) August 5, 2024

Furthermore, Cosmos Hub has seen an uptick in staked ATOM tokens, indicating a higher engagement rate within its delegation. This growing involvement reflects positively on the platform’s stability and potential for future growth.

Additionally, Celestia, another player in the Cosmos ecosystem, has experienced a dramatic increase in active addresses, suggesting expanding usage and adoption.

Injective, with its gas compression feature, has also shown considerable progress. The platform’s increase in staked INJ tokens and transaction volume highlights its growing influence within the decentralized exchange (DEX) space.

These developments collectively contribute to the broader Cosmos ecosystem’s appeal, which could, in turn, benefit ATOM in the long run although the token’s immediate future remains uncertain.

The token remains in a volatile price range between $3 and $5, with ongoing bearish pressures impacting its short-term stability.

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