- Cosmos crypto price has formed a double-bottom pattern on the daily chart.
- Cosmos hinted of a new partnership with Avalanche Blockchain.
- The ecosystem continued growing in October as dYdX Chain was launched.
Cosmos ATOM price has bounced back in the past few weeks as investors bought the dip and as other cryptocurrencies bounced back. The token jumped to a high of $8.13, the highest level since August 15th. It has jumped by more than 28% from the lowest level this year.
Cosmos ecosystem growth
Cosmos is one of the leading players in the blockchain industry. It is a smart contract platform that has been used to build hundreds of dApps. Developers love it because of its interoperability, quick transaction speeds, and low transaction costs.
ATOM, its token, rose in October in line with the performance of other cryptocurrencies like Bitcoin and Ethereum. The main catalyst for this was the ongoing hope that the Securities and Exchange Commission (SEC) would approve a Bitcoin ETF.
If the ETF is approved, we could see a situation where companies file for more ETFs like Ethereum, Cardano, Cosmos, and Litecoin. Cryptocurrencies also acted as ‘safe havens’ as concerns about the bond market rose.
Meanwhile, Cosmos ecosystem growth continued. The most important event was the launch of the dYdX Chain mainnet. The launch is helping dYdX move to a more decentralized path. It will also lead to lower transaction costs. dYdX is built using the Cosmos technology.
Cosmos also hinted a new partnership with Avalanche, one of the biggest chains in the industry. In a Tweet, Cosmos hinted that Avalanche will embrace the Inter-Blockchain Communication Protocol (IBC). This is an open-source protocol that handles authentication and transport of data between blockchains.
Looking ahead, there will be several catalysts for the ATOM price. For example, it will react to the upcoming Federal Reserve interest rate decision set for Tuesday. It will also react to the upcoming Bitcoin ETF news.
Cosmos ATOM price prediction
The daily chart shows that the ATOM price formed a double-bottom pattern at $6.31 between September and October. In price action analysis, this is one of the most popular bullish signs. The token is now trading at the neckline of this pattern at $7.8.
Cosmos has moved above the 50-day and 200-day Arnaud Legoux Moving Averages (ALMA), which is a bullish sign. Therefore, the outlook for the token is bullish, with the next level to watch being the 23.6% Fibonacci Retracement level at $8.50. The stop-loss of this trade will be at $7.60.
