With the crypto markets experiencing an upside, Cosmos (ATOM) has been one of the top altcoin performers. This crypto asset recovered from its recent declines, and now looks set for further gains. Let’s look at some of the technicals and fundamentals to gauge its further price potential.
On Monday, March 18, Cosmos was up 4.71%, trading at $4.80. The token’s performance over the past week was more impressive, rising 32.68%, allowing it to recover from earlier losses when it hit a multi-month low of $3.42. This recovery also sets up a potential surge for the ATOM price in the near future.
Cosmos Price Prediction
Much of Cosmos’s recent price performance is influenced by the overall crypto market sentiment. Still, the token is showing strong technicals in its right and outperformed most of the biggest tokens. A look at its charts shows that the token is trading above the descending channel, which started forming in December.
Breaking this pattern suggests that further upside is likely. If the Cosmos price stays above the upper boundary of this channel, currently at $4.162, the price could reach $7.69 in the next few weeks. Daily technicals also add to this narrative, with ATOM above key moving average levels.
Still, weekly technicals paint a more mixed picture. The token will likely face resistance at the weekly exponential moving average (EMA) of $5.479 and the weekly simple moving average (SMA) level of $6.167.
Further catalysts for Cosmos’s price growth are in its fundamentals. On Monday, March 17, the Cosmos Foundation announced a major network upgrade. The Mercury upgrade for the Neutron chain, set to go live on April 9, will make Neutron a sovereign proof-of-stake network.
While the short-term effects of this upgrade could be mixed, it holds long-term bullish potential. So far, Neutron has leveraged Cosmos’s security for its protocol, boosting demand for ATOM. However, the upgrade is expected to boost its throughput by 11x and enhance liquidity through Supervaults. These new features have the potential to boost Cosmos’s use cases and adoption.
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