Cosmos (ATOM) is a relatively new cryptocurrency on the market so many people still may not understand too much about it, and yet, it sits amongst the top-ranked projects.
ATOM only really started to trade on exchanges toward the end of March 2019 at which time the price was around $3.40. The cryptocurrency went on to surge from April through to June as it rocketed by a total of 132% to reach the ATH price around $7.23 in June 2019. However, after reaching this level of resistance, ATOM rolled over and dropped by a significant 72% as it plummetted into support found in September at $1.95.
Since finding this support, ATOM has rebounded and increased by a total of 93% to the current trading price of $3.71 as of early November 2019. ATOM has seen a turbulent few months after launch, especially after dropping by a precipitous 72% from the high, but the cryptocurrency remains ranked amongst the top-flight competition.
Cosmos is a pretty difficult cryptocurrency project to wrap your head around but it essentially solves the scalability and interoperability problems that blockchains face today (more on this below!). The cryptocurrency has gained support from top exchanges such as Binance and has been added to major wallet providers such as TrustWallet, so there is evidence that they are making waves. Furthermore, as more applications are deployed on the Cosmos network, the ATOM token will see a further increase in its utility.
For these reasons, I strongly believe that ATOM will be able to surge by a total of 172% from the current price of $3.71 and reach my target of $10 at some point in 2020. It can certainly continue to surge much higher but I am keeping this prediction pretty conservative due to the fact that this is a young project amongst the public.
In this article, I’ll firstly cover a range of topics that I believe will influence IOTA in reaching my $1 target during 2020 and then analyze IOTA on the long term daily charts to highlight some areas of resistance on the way toward the target.
Cosmos Shocked Everybody As The No-Name Appeared Out Of Nowhere
The majority of the cryptocurrency community were surprised to see Cosmos come out of the woodwork and shoot straight into the top 20 projects as people scrambled to find out more about the project.
Cosmos aims to become a solution to solve the scalability and interoperability problem that is seen in today’s traditional blockchains. It is often dubbed as the "Internet of Blockchains" as it is an interoperability focused project in which different blockchains can communicate and connect to each other through the Cosmos ecosystem.
The Cosmos network functions as a decentralized network of independent blockchains that are able to run parallel to each other as they are all connected to a ‘Hub’ blockchain which uses a BFT consensus algorithm along with the Tandermint Core for security. The structure of the network is split into Zones, the independent application-specific blockchains, and the Hub, which is the main central Cosmos blockchain. As all of the independent blockchains are linked to the Hub they are able to communicate with each other - providing interoperability.
The scalability problem is solved due to the fact that the throughput of the Cosmos network increases as more parallel blockchains are deployed on the main network. These independent application-specific blockchains all have their own ledger, protocol, and main language, and together they all help Cosmos horizontally scale.
Cosmos can get quite tricky to understand so I will not try to explain too much in this price-focused article. Instead, if you would like to understand the Cosmos network and the way it works in more depth, check out this great article.
Cosmos Has Been Around Much Longer Than Anybody Knew
Cosmos was created by Jae Kwon and Ethan Buchman in 2017. Many people think Cosmos is a new project that was created in 2019, however, development for Cosmos has actually been rolling for a few years as shown by the data from Santiment below;
The chart clearly shows that development activity for Cosmos had started way back in 2017. The pace of development ramped up during 2018 and has continued to go strong in 2019,
The entire system went live on March 14, 2019, with an ICO being held in April 2019.
Cosmos Makes It Easier To Deploy
The team over at Cosmos released an SDK that allowed developers to launch decentralized application-specific blockchains (dApps) that are able to communicate with each other. They are all able to communicate as they are connected via the Cosmos Hub which is connected to the Tendermint Core (Cosmos Blockchain) through APCI socket protocol. The application-specific blockchain, known as zones, can communicate and allow the exchange of tokens.
The Cosmos SDK is intended to make the entire process of creating a dapp simple as the team has built a suite of pre-built SDK modules. This means that a user with minimal developing skills can create a simple dApp and run it on the Cosmos Hub. Furthermore, all decentralized apps are developed in the Go coding language to take advantage of the strong Goland ecosystem.
ATOM is the native token for the Cosmos network and is imperative to its functioning. ATOM is used by validators to vote and get rewards for securing the entire network in a process known as staking.
Top Industry Leaders Are Excited About Cosmos
In its short time, Cosmos has garnered much attention from cryptocurrency services as a string of wallets and exchanges start to integrate ATOM into their ecosystem - bringing major validation to the Cosmos project. The most notable wallet addition was that of Trust Wallet. The two projects are even working together to bring a feature for users to delegate coins and stake through the application.
Lunie International Software Systems went on to release the first fully-featured UI for interacting with the Cosmos Hub in April 2019;
Binance, one of the leading cryptocurrency exchanges in the world, announced that it would add ATOM during April 2019;
The exchange went on to officially add ATOM toward the end of October 2019. The relationship between Binance and Cosmos runs a little deeper as Binance’s own blockchain, Binance Chain, is pretty much a fork of the Tendermint and Cosmos SDK.
Some interesting project using Cosmos Network;
Lino - a value-sharing content economy in which content creators, viewers and all contributes are incentivized to maximize long-term economic growth in a sustainable way. In fact, DLive was the first Dapp on the Lino Blockchain and it even managed to get PewDiePie, the largest content creator in the world, to do some exclusive DLive streams.
Kira Interchain Exchange - a next-generation hyper-scale decentralized exchange that will utilize cross-chain transfer through Multi-Bonded Proof of Stake (MBPos) and Multi-bonded Proof Of Authority (MBPoA).
Cosmos (ATOM) Price Analysis
LONG TERM - DAILY CHART
What Has Been Going On?
Taking a look at the long term daily chart above for ATOM, we can clearly see the price surge seen during May and June as ATOM rises to the $7.00 resistance level. The market had attempted to break above this level of resistance during June and proceeded to roll over on the 3rd attempt.
ATOM went on to plummeted from July through September until support was found at the $1.95 level - creating a fresh all-time low for ATOM. After rebounding at this support, ATOM attempted to rise higher but met resistance at the $3.50 and fell back beneath $2.00 once again.
During October, ATOM was able to re-climb back higher again and managed to break above the $3.50 resistance level during November 2019. The cryptocurrency has now met resistance at the long term bearish .382 Fibonacci Retracement level priced at $3.82 as it attempts its resurgence higher.
Are We Bullish Or Bearish (as of November 2019)?
As of November 2019, we are trading within a neutral market condition. For this market to be considered as bullish, we would need to see ATOM rise and break above the resistance at $3.82 and continue above $4.00. If the sellers were to step in and push the market back beneath the $3.00 level - the market would be considered as bearish.
If the market does turn bearish we can expect strong support at $2.60, $2.50, $2.00, and $1.95. If ATOM was to fall beneath $1.95, this could greatly affect my 2020 price prediction.
Where Is The Resistance On The Way Up TO $10.00?
Alternatively, if the buyers can break above the current resistance at $3.82 and above the subsequent resistance at $4.00, we can expect immediate higher resistance to be located at $4.21 which is provided by the short term 1.414 Fib Extension. Above this, resistance can be found at $4.40 which is resistance provided by the long term bearish .5 Fib Retracement. Following this, resistance lies at $4.54 and $4.98 (bearish .5 Fib Retracement).
If the bulls continue to rise above $5.00, resistance can be expected at $5.44, $5.81 (bearish .786 Fib Retracement), $6.00, $6.30 (bearish .886 Fib Retracement), and $7.00. The resistance at $7.00 is considered to be strong as it pretty much is the ATH price for ATOM.
If the bulls do manage to break above the $7.00 resistance level we can expect higher resistance to be located at $7.50, $8.00, $8.26 (1.272 Fib Extension), and $8.50. This is followed up with higher resistance at $8.83 (1.414 Fib Extension), $9.00, $9.50, and $9.66 (1.618 Fib Extension). If ATOM can clear these levels of resistance, it will be clear to make an attempt at my 2020 target of $10.
ATOM has had a rollercoaster of a year in 2019 after launching and dropping by a steep 70%. However, despite this sharp price drop, ATOM still remains ranked in the top flight cryptocurrency projects as it starts its road to recovery.
ATOM has a strong potential to be able to rise by a total of 170% from the current trading price and reach my 2020 target of $10. The ecosystem behind Cosmos is already quite and large and is continuing to grow at an alarming pace. As Cosmos continues to grow, the utility of ATOM will increase adding further value to the cryptocurrency.
To reach $10, ATOM will first need to overcome strong resistance at $4.00 and $5.00. Following this is strong resistance at $7.00 which is the ATH for ATOM. IF the buyers can continue above $7.00 they will need to clear resistance at $8.26, $8.83, and $9.66 before being free to make an attempt at the $10 2020 target.