The Cosmos price prediction indicates further downside potential as the project continues to feel the effect of Terra’s collapse. Consequently, tokens that are listed on the Cosmos blockchain have suffered significant losses.
Interestingly, the crypto market’s interconnectivity of chains and the assembly of tokens on a single blockchain typically produce a domino effect. For example, the cross-chain bridge between Solana and Arweave (SOLAR) meant that the surge seen in the Solana token in 2021 also pushed up the AR/USDT pair in like fashion. Similarly, Terra is based on the Cosmos network. The de-pegging of TerraUSD (UST) and the collapse of the Luna token dragged down the Cosmos network’s token along with it.
The fall for Cosmos has been colossal. Before the implosion of Terra and the LUNA token’s apocalyptic collapse, the tokens listed on Cosmos were riding high on a $61.6billion valuation. That valuation has seen three-fourths of its value wiped off. In April, Cosmos’s native token ATOM was trading at $33.3 Tether dollars at its highest point. It has similarly lost 75% of its value and barely hangs on to the $9.6 price. Things may worsen as the technical picture on the daily chart reveals a bearish pattern that could see the token fall even more steeply, except new buying pressure steps in.
Cosmos Price Prediction
The breakdown move of the bearish pennant on the daily chart is on, but this move has encountered an obstacle at the 9.84 support level. If this support fails, the 8.60 price mark comes into the picture, being the 23 May 2021 low. The completion point of the measured move is expected to come in at 4.10 (4 November 2020 and 24 December 2020 lows), but the 6.63 pivot (22 January 2021 lows) will prove to be an obstacle that must be overcome for this move to be attained.
Conversely, the bulls need to defend the 9.84 support and initiate a bounce that clears the 12.00 psychological price mark (21 June 2021 and 28 July 2021 highs) to give the price activity a chance at recovery toward 14.23 (28 May and 10 July highs). Clearance of this level opens the door towards 17.24 (18 April 2021 and 27 August 2021 lows), while 20.24 (15 December 2021 low and 5 May 2021 highs) forms an additional barrier to the north.