Cosmos (ATOM) is a young cryptocurrency and a formidable rival to the well-liked Ethereum smart contract technology, which gives programmers the ability to build autonomous blockchains with a wide range of customization options. When the top Ethereum-powered futures contracts exchange, dYdX, announced its ambitions to build its own standalone blockchain network on Vosmos in 2022, a number of projects moved to the Cosmos ecosystem.
Leading figures in the cryptocurrency sector, including Bain Capital, 1Confirmation, and Paradigm, have made large investments in Cosmos. But even with its enormous popularity and success, is Cosmos still a wise investment for traders in 2023?
Let’s investigate why, looking into market forecasts and historical price analysis for ATOM, as well as performing a SWOT analysis of ATOM coins.
Historical Price Analysis of ATOM
2019 saw the launch of ATOM at a price of $6.633. After a brief decline, it fluctuated between $3 and $5 in 2020 as the global COVID-19 pandemic and lockdown affected the cryptocurrency and other financial markets.
Later, Cosmos’ value fell to a low of $1.6 before turning around in 2021 as ATOM followed suit and the cryptocurrency markets boomed. By May 2021, it had achieved a periodic high of $28.6, and by the autumn of same year, Cosmos had hit an all-time high of $44.70.
Once more, there was a slipback, but thanks to the lucrative relationship with Terra Blockchain, the coin’s value recovered in January 2022 at $40.17. But in May 2022, Terra abruptly failed, throwing the market back into chaos and driving its value as low as $5.59. However, after receiving terrible news about the bankruptcy of FTX and learning that dYdX was functioning on Cosmos, the ATOM increased to $16 in September 2022, resulting in an annual loss of approximately 70%.
Cosmos had a successful start to 2023 as it capitalized on the strong market, trading at $15.36 in February before gradually declining later. The SEC declared ATOM to be an unregistered security in June, which caused its price to further decline to under $10 before eventually reaching $7.50.
Cosmos climbed over $9.89 in July after a brief period of recovery, but thereafter stayed around the same value, currently trading at about $6.78.
But it’s vital to keep in mind that sceptics have various viewpoints on the current price activity. The present price action of ATOM has a planned retracement to secure crypto market liquidity, according to the analysis. Sceptics predicted that ATOM’s price range would oscillate between $15 and $18, and this is what the current price action of ATOM is doing.
The value of ATOM breaking over its $10 barrier and converting itself into firm support would create favourable conditions for a bullish trend and long entries, according to a different speculative view shared by several other crypto exports. These predictions, which are oddly bullish, largely differ in projected price heights and velocity.
So, can investors make a million dollars with Cosmos? ATOM is now a medium-cap virtual asset with a market capitalization of $2,492,242,300. It will continue to rise as more current and new cryptocurrency ventures utilise the blockchain network. The value of ATOM will significantly increase as a result of the potential market depletion caused by activity on the Cosmos network. It is a well-liked finite resource.
A trader should only invest money they can afford to lose because cryptocurrencies like Cosmos are part of the high volatility asset class. Analyse both the technical and fundamental aspects of a cryptocurrency before choosing whether to trade.