ATOM has maintained an overall bullish performance since mid-June and is among the best performing cryptos for the past 3 months. It continued in the same vein for the past 7 days after which it rebounded over 25%.
ATOM’s bullish performance over the past 7 days came after it successfully bounced off its ascending support line. The latter is part of the ascending price channel it has been trading in since hitting a low in mid-June. Despite its advantage, however, ATOM could be due for a setback. This may be the case, especially since it was trading within a key resistance level at press time.
ATOM tested its resistance zone at press time in mid-May after the brutal crash in the same month. It was unable to exceed this level on August 24 and 25. The alt price has seen resistance at the same price level for the past 4 days.
Can ATOM bulls overcome psychological selling pressure?
The price level at ATOM’s press time suggested that there was a greater likelihood of a short-term bearish retracement. Despite this, ATOM’s selling pressure remains weak. This could have something to do with the fact that the Cosmos network is rethinking its delegation strategy. It is possible that this will positively affect demand, especially if the number of validators increases.
Dear Cosmos community!
Over the past few months, the @cosmos The community has actively engaged in a public discussion about the role delegations play in an ever-expanding Proof of Stake ecosystem and how to foster a healthy and sustainable environment for validators. pic.twitter.com/HFOV8iSRF7
— Interchain Foundation (@interchain_io) August 30, 2022
Cosmos’ development plans underline ATOM’s good long-term prospects. In fact, the blockchain network has maintained healthy development activity over the past 30 days.
Some of the upcoming developments include the integration of the Cosmos IBC with the Polkadot network. One of the potential implications will be a broader demand for DOT through its expanded scope. Cosmos will also integrate with the Ethereum Beacon chain once the Ethereum 2.0 merger is complete.
The Cosmos network is ready for many development activities, especially those that involve integration with other blockchain networks. Most of these developments could end up having a positive influence on ATOM’s demand and therefore potentially affect its price action.
Investors should also note that the cryptocurrency is still heavily discounted, despite its recent rise. On the other hand, a potential retracement could negate some of its upside potential, especially if the market enters another major sell-off.