- Cosmos price has crashed by 35% from its year-to-date high.
- Technical analysis points to more declines in the near term.
The Cosmos price has retreated slightly in the past two straight days as its strong recovery faltered. ATOM is trading at $30, which is a few points below its weekly high of $33. This performance brings its total market capitalization to more than $8.55 billion.
Cosmos ecosystem growth
Cosmos is a fast-growing ecosystem of parallel blockchains that can communicate with each other in a decentralized manner.
The network solves a major problem where existing blockchains exist independently. Today, there are over 150 cryptocurrencies that have embraced the Cosmos ecosystem.
They include well-known coins like Binance Coin, Crypto.com Coin, OKExChain, and Thorchain. These apps have a combined market cap of more than $160 billion.
Cosmos also has a product known as SDK that enables developers to build decentralized applications of all industries. One of the best-known coin built using the Cosmos SDK is Terra. In the past few months, Terra has grown to become a top-10 cryptocurrency.
At the same time, Terra’s network has become the second-biggest platform for building DeFi apps. Its apps have a total value locked of $14 billion, making it bigger than well-known platforms like Binance and Solana.
Osmosis is another well-known project built using Cosmos SDK. It is a fast-growing DeFi platform whose native coin is valued at more than $2 billion.
The ATOM price has done well recently because of the rising optimism that its ecosystem will continue expanding in the coming months. In a recent note, the developers announced that there were many upcoming projects set to launch in Cosmos. The apps, which are currently running their testnets are Archway, Celestia, and Tgrade.
Archway is an incentivised smart contract platform while Celestia will become the first modular blockchain network. These developments, coupled with the upcoming upgrades, have made the ATOM price do well.
Cosmos price prediction
The daily chart shows that the ATOM price has been under pressure in the past few days. It has declined by about 35% from its highest level this year. As a result, the coin’s price has moved slightly below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly below 50.
Therefore, for now, there is a likelihood that the Cosmos price will continue being under pressure as bears target the ascending trendline at about $22, which is about 22% below the current level. This view will be invalidated if the price moves above $33.
