- Cosmos price made a strong pullback on Monday.
- The pullback is mostly because of the broad cryptocurrencies sell-off.
The Cosmos price has pulled back in the past few days as cryptocurrencies recoil. ATOM, its native token, dropped to a low of $9.26 on Monday, which was about 18% below the highest point this month. It has fallen to the lowest point since July 18th of this year. Its market cap has dropped to about $2.7 billion.
Why is ATOM retreating?
Cosmos is an important platform that describes itself as a rapidly expanding ecosystem of independent blockchains that are connected with the Inter-Blockchain Communication (IBC) protocol. It helps multiple cryptocurrencies communicate with one another.
According to its website, there are about 49 cryptocurrencies in this ecosystem that have a total market cap of over $50 billion. Some of the most popular coins in the Cosmos ecosystem are BNB Coin, OKX, CRO, KuCoin Token, ThorChain, and Kava among others.
Cosmos has also developed a product known as an SDK, which is a platform where developers can build their decentralized applications. Some of the most popular applications created on the network are Osmosis, Akash Network, Ankr, and Cronos. Recently, dYdX, the popular DEX, announced that it will be moving from Ethereum to Cosmos Hub.
The Cosmos price has declined slightly in the past few days in line with the broad performance of the industry. It has fallen simply because the strong performance of Ethereum price has faded in the past few days. After soaring to $1,670 last week, the coin has now pulled back to about $1,550. Historically, cryptocurrency prices tend to move in sync with each other.
In the long-term, there is a likelihood that the ATOM price will continue rising because of its strong market share in its industry. It is also gaining more traction among upcoming developers.
Cosmos price prediction
The four-hour chart shows that the ATOM price has been in a strong recovery phase in the past few days. The coin formed an ascending channel that is shown in black. The price is now at the lower side of this channel. Also, it moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) is approaching the oversold level.
Therefore, Cosmos price will likely bounce back as investors target the upper side of the channel at around $11.35. However, a drop below the support at $8.75 will signal that bears have prevailed.
