The Cosmos price (Atom) has surged by 40 percent this month, reversing a trend that caused its price to plummet by 10 percent in December last year and 26 percent in the previous months. The change in the crypto trend has been due to several reasons, including the current industry-wide cryptocurrency bullish trend.
Why is Cosmos Price Surging?
However, the Cosmos price surge has not been due to its significant correlation to the crypto industry alone. Its utility has also contributed to its current meteoritic rise in the crypto market. For instance, reports indicate that Injective recently launched a $150 million ecosystem fund to boost Defi and Cosmos adoption. Such a significant investment in the project is likely to restore confidence in investors about the project, which is likely causing it to continue rising in the markets.
Recent data from CoinMarketCap also shows a surge in the trading volume of Cosmos. For instance, in today’s trading session, the total trading volume is over $200 million, this is more than what the project used to average in December and almost the entire of 2022. In most instances, when the trading volume surges, it is followed by a price surge, exactly as we have seen in the current Cosmos price action.
Cosmos Price Forecast
As seen from the above Cosmos price analysis, the current price surge has been due to numerous reasons, including an industry-wide bullish trend, its utility, and continued traction with users. On the technical side of things, we have also seen that Cosmos is in an aggressive bullish trend. Technical indicators such as the Williams Alligators also continue to show Cosmos being in a long-term bullish trend.
Therefore, combining both fundamental and technical analysis, I expect to see the Cosmos price continuing to rise for the subsequent few trading sessions. We are highly likely to see it trading above the $20 price level for the long term. A drop below $10 will invalidate my analysis.
Daily Chart
