Key Takeaways:
- Cosmos (ATOM) could further decline by 15%.
- Cosmos introduced bug fixes and improvements on the blockchain, along with a 2022 roadmap.
YEREVAN (CoinChapter.com) – Cosmos (ATOM) has declined 8% since establishing a two-week high of $30.40 on Feb. 7, now eyeing an additional downside momentum based on short-term bearish technicals.
In detail, ATOM has been trading in a technical pattern called the “Ascending Triangle” since July 2021. It entails a horizontal resistance trendline (purple bar on the chart below) and upward-sloping support. The bullish setup predicts an uptrend after ATOM exhausts the formation. However, on Feb. 9, the token was still far from breaking out.
Also read: Cosmos may continue its Q1/2022 rally to $80 as ATOM explodes 60% in a week.
Moreover, the digital asset retested a significant resistance line at $32.60 and headed towards the Triangle’s support. If ATOM adopts the downside move, it could end up at $25.70, or 15% lower than the current value.
Additionally, the token’s 20-day exponential moving average (EMA-20; blue wave) and the EMA-50 (red wave) painted a death cross.
The bearish formation is a cause of the dropping price, not the reason behind it. However, as the ATOM/USDT exchange rate plunged below both waves, they could act as additional resistance.
Also read: Cosmos (ATOM) eyes a 160% uptrend on a confluence of bullish factors.
A more bullish scenario is also possible if ATOM holds the current support at $30. In that case, the digital asset could race towards the resistance bar and register a 32% uptrend. However, considering the mentioned bearish technicals, a downside move prediction has more merit.
What’s new with Cosmos?
The Protocol announced its upgrade from Cosmos SDK v0.42 (Stargate version) on Feb. 9.
Cosmos also urged its users to upgrade to Cosmos SDK v0.44 or v0.45 “as soon as possible.” Additionally, the Network had a positive outlook on 2022 and offered its users the roadmap for the year.
Interchain Accounts will be landing on the Cosmos Hub with the completion of the Theta upgrade expected in Q1 2022.
promised the Network.
Cosmos asserted that Interchain accounts “have the power” to elevate the Protocol’s DeFi capabilities through elevated security. They will allow ecosystem chains to securely control accounts on other ecosystem chains, rather than simply transferring tokens from one chain to another.
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Moreover, the Network announced that 2022 would bring more protocols into IBC (internet of blockchains). Peng Zhong, the CEO of software company Tendermint, agreed, as he commented on the matter in late 2021.
I think we will easily see 200 chains connected via IBC by this time next year and, in the long term, even a million.
said the executive.