Cosmos (ATOM) is under pressure in the short term, despite a slight increase in its value. It has been noted that the coin is likely in a bearish position, and its support levels have been tested. Technical issues have also affected the market of the coin.
At press time, Cosmos (ATOM) is trading at $2.27, with a trading volume of $76.11 million in the last 24 hours and a market capitalization of $1.12 billion. Over the last 24 hours, the token has experienced a gain of 0.66%.
However, despite the slight rise in prices, technical analysts are being cautious. Crypto analyst Crypto Patel provided a detailed analysis of the ATOM/USDT 4-hour chart.
He said that the market structure suggests that the market is weak and the price is retracing into a valid mitigation zone, with liquidity levels already swept. He noted that there was a weak bounce and no bullish momentum, which meant that downside was still favored.
Patel suggests an entry at $2.294 with a stop-loss at $2.423. The target prices are $2.20 and $2.08. Patel suggests waiting for confirmation of the entry through price rejection or displacement before entering the trade, taking partial profits at the first target, and trailing stop-losses aggressively.
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From a wider perspective, analyst Bitcoin PATRONU discussed ATOM’s past performance, stating that the project was very innovative when it was launched in 2019. Cosmos was the pioneer in blockchain infrastructure, mechanism design, and interoperability, setting the bar very high in the crypto space.
However, the growth of PATRONU has been hampered by the challenges in the user experience and product-market fit, despite its technical advantages.
As Cosmos continues to navigate its short-term technical challenges, the level of its support will be closely watched. The direction it takes may either help the token regain its footing or continue its downward trend.
The market is closely watching the token, as its performance may be indicative of the overall performance of the blockchain market.
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