Cosmos In A Downtrend Since Last 2 Months – Investors Shying Away From ATOM?

Christian Encila

Last Updated: October 24, 2022 9:40 am

3 mins read

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Cosmos (ATOM) started this year with a bang by attaining its all-time high (ATH) on January 17 when it traded for $44.45.

But just like other cryptocurrencies, it failed to sustain that level and was relentlessly pummeled by the volatile crypto market.

Cosmos has been down by 16.8% over the last month
ATOM is forecasted to fall below $7 a month from now
Cosmos remains in extended bearish momentum nine months after attaining its ATH

Nine months later, Cosmos lost more than 70% of its ATH and is currently trading at $11.86 according to tracking from Coingecko at the time of this writing.

In just two weeks, the asset went down by 10.3%. On a month to date basis, the 23rd largest cryptocurrency in terms of market capitalization declined by almost 17%.

It failed to break free from its downward trend that has been going on since the latter part of September.

Technical Indicators Not Looking Rosy For Cosmos

Hopes for a bullish run for the asset this time might be met with disappointment as its analysis points are leaning towards extension of the current bearish momentum.

Source: TradingView

While the Relative Strength Index (RSI) of Cosmos stayed above 40, it is still below the 50 neutral score. While not strongly, it will still pull the digital coin in a downward trend.

In September, ATOM’s On-Balance Volume (OBV) swayed between two levels of resistance and support. In this case, a surge cannot be ruled out but the same can also be said about a sharp price dump.

The crypto’s current price action is suggesting that over the next few days sellers will dominate. As a result forecasts see Cosmos declining even more in the days to come.

According to prediction from Coincodex, the next five days will see ATOM go down all the way to $10.72.

The situation doesn’t get better from there as the 30-day prediction hints a steep fall that will pull Cosmos to $6.72.

ATOMic Interest Already Fading?

Cosmos had a good start for October in terms of development activity, tallying strong numbers from early to mid part of the month.

But developers seem to have stalled as activity metrics started to dwindle towards the end of the month. Moreover, social dominance for the protocol remained low, peaking at 0.72%.

Even when Cosmos rallied in September, from $11.7 to $16.7, it failed to surpass the current almost insignificant value of its social dominance.

By all indications, it seems interest for the crypto asset is starting to fade. This is seen to impact trading price severely, as ATOM will probably soon hit $10.53 or worse, $9.

ATOM total market cap at $3.3 billion on the daily chart | Featured image from Jeremy Thomas/Unsplash, Chart: TradingView.com

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.