The latest flash crash introduced the bigger market to its knees. It additionally introduced down the full crypto market cap by virtually 15%, with the identical falling to $2.3 trillion. In actual fact, barring some altcoins, many of the market appeared to be flashing pink alerts.
Cosmos, nonetheless, introduced a somewhat curious case after it resisted the market fall initially. However then, its worth quickly gave in and recorded losses.
As reported in a earlier article, for ATOM, the dip got here somewhat late. Mainly, its worth held nicely whereas the bigger market tumbled. On 3 and 4 December, ATOM’s worth spiked by near 30%. Nevertheless, losses quickly adopted and the crypto fell under the essential $25.5 help/resistance mark.
Now, the pertinent query right here is – With the coin oscillating at $25.38, on the time of writing, presenting 11.12% every day positive factors, the place might ATOM go from right here?
The value pump analysis
Over the earlier yr, Cosmos’s ecosystem has seen fast growth with inter-blockchain transfers on the rise. An upsurge in transaction volumes on the blockchain may very well be credited to the creation of extra DApps. Additionally, a rise within the variety of chains linked through IBC during the last month.
Notably, initiatives like Terra constructed on Cosmos SDK and Crypto.com Coin have additionally registered important progress over the previous month.
Other than the intensive community of credible blockchains working on Cosmos, its provide dynamics add additional cushion to the worth. Additionally, over 63% of ATOM’s complete provide is staked, creating circulating token shortage which performs a key position in driving consumers into the market.
Supply: Messari
This bullish supply-demand dynamic has aided the token’s rise by over 300%, from its June low of round $8 to $25, on the time of writing.
What’s fascinating concerning the worth?
ATOM’s worth, after holding nicely for a few days, recorded a swift fall. However, with positive factors coming in on the time of writing, ATOM’s restoration may very well be swifter.
Curiously, pseudonym analyst Bluntz notes a similarity between ATOM and AVAX’s worth buildings, anticipating that ATOM might rally north. In keeping with the analyst, the crypto introduced an analogous trajectory that AVAX had throughout the starting of this yr.
Supply: Bluntz Twitter
Bluntz additionally famous an fascinating fractal between the 2 trajectories. The analyst noticed that AVAX rallied in an analogous setup, by almost 250% after discovering stable help across the $50 to $60 help zone.
That being mentioned, ATOM’s Futures and Perpetuals markets appeared brilliant as Open Curiosity spiked by 10.32% and 6.03%, respectively. With this rise within the open curiosity, the expansion within the Futures market might push spot costs.
Even so, one should be questioning, will ATOM make an excellent funding at this level?
Nicely, whereas ATOM’s prospects of selecting up tempo look good, its worth wants a retail push above the $30-mark. ATOM’s commerce volumes nonetheless don’t counsel retail euphoria and a return of retail curiosity might reignite the alt’s rally.
