Home
News
- Analysts predict ATOM to achieve new highs soon due to fractals, bullish technical analysis patterns, and the fact that 67 percent of the total supply is staked
- As a result, in an ideal environment, if ATOM breaks above the flag’s upper trendline, it may rise as far as the height of the flagpole, which is roughly $35
- The scarcity of circulating tokens might be a factor in attracting buyers to the market
Analysts predict ATOM to achieve new highs soon due to fractals, bullish technical analysis patterns, and the fact that 67 percent of the total supply is staked. Cosmos has the potential to make significant gains in the next weeks, according to a bullish continuation pattern on its longer-time frame chart. The pattern dubbed a bull flag, arises as the asset declines while bouncing between two downward sloping trendlines. It finally breaks out of the range in the direction of its prior trend, with a profit objective equal to the magnitude of its previous upswing, also known as the flagpole.
As a result, in an ideal environment, if ATOM breaks above the flag’s upper trendline, it may rise as far as the height of the flagpole, which is roughly $35. When evaluated from the present possible breakthrough point, this indicates a price objective approaching $65. The bullish setup in ATOM was evident as the token soared over 330 percent from its low of $7.82 in June to a swing high of $32 this week.
ALSO READ: JANET YELLEN BELIEVES A CBDC REQUIRES CONSENSUS
The scarcity of circulating tokens might be a factor in attracting buyers to the market. Messari’s data revealed that roughly 64% of the current ATOM supply has been staked. Cosmos investors have pledged over 180 million ATOM tokens to become validators on the company’s ‘Cosmos Hub,’ a proof-of-stake blockchain that is one of the network’s many hubs, according to statistics.
Users earn a share of the network’s transaction fees and block rewards in exchange. The increased amount of staked ATOM tokens, according to Pentoshi, an independent market analyst, has been essential in driving up the price of the token.
ATOM sellers have been losing steam, according to the pseudonymous Twitterati, who cites two corrections in the fourth quarter that were halted in the middle owing to increased purchasing pressure around the token’s prior all-time high levels.
Based on comparable increases made by one of ATOM’s leading blockchain rivals, Avalanche (AVAX), earlier this year, another analyst identified by the alias Bluntz, predicted that ATOM will continue its upward trend. Bluntz, like Pentoshi, sees ATOM’s probability of regaining its earlier high as a basis from which to resume its bull run. AVAX soared roughly 250 percent after establishing a strong footing inside the $50 to $60 support region in a similar scenario.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
