- Cosmos token ATOM effectively pared its January gains.
- The falling wedge could take the coin 75% higher if confirmed.
- Krafton’s Metaverse partnership with Cosmos could constitute a bullish factor.
YEREVAN (CoinChapter.com) – Cosmos token ATOM price has consolidated sideways between $6.5 and $6.9 in the previous five days and, after a 2% intraday uptick, stood at $6.8 on Sep 6.
ATOM technicals bullish despite a 27% August crash
In detail, the ATOM token has traded within a ‘falling wedge’ formation since Feb 2023. The setup features converging resistance and support lines that take the coin value incrementally lower while connecting the swing highs and lows.
Notably, the falling wedge is a bullish reversal pattern that forecasts a breakout equal to the maximal formation height after ATOM manages to breach the resistance. Thus, the target price for the Cosmos coin would be $12, or over 75% higher than the current value.
As of Sep 6, ATOM has not yet confirmed the setup. Conversely, the token retested the wedge’s support on Sep 1 after a 27% crash throughout August. However, fundamental developments on the Cosmos blockchain could push ATOM higher, backing the bullish technicals.
Krafton to build a metaverse on Cosmos
In April 2023, South Korean video game company Krafton, the creator of the popular game PlayerUnknown’s Battlegrounds (PUBG), announced its intention to build a new Cosmos chain to house its planned metaverse—Migaloo.
Dubbed ‘Settlus,’ the new chain would incorporate a payment and settlement layer courtesy of Circle’s USDC stablecoin.
While the news did not cause much hype on social media, the two companies confirmed their plans during Korea Blockchain Week. On Sep 5, they introduced a “purpose-built blockchain” for powering transactions in the Migaloo metaverse.
Bryan Song, Migaloo’s Business and Operations Lead, emphasized the importance of the simultaneous Metaverse and blockchain creation. “Consequently, when a creator produces content within our network, the original digital asset will automatically transform into NFTs,” Song explained.
Notably, the Testnet launch is scheduled for 2024. Thus, traders shouldn’t expect a rapid ATOM rally. However, the event started to attract online attention. An anonymous crypto analyst with a substantial following commented on the news, calling it “big and not talked about enough.”
This is big and not talked about enough. The company behind PUBG is building a metaverse on a Cosmos blockchain! PUBG has >290M monthly players. Cosmos eco is far from dead. It just needs to figure out a better way to accrue value to ATOM.they tweeted.