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Cosmos approaches all-time high after record volume on its DEX

2 min read

 

Amid the weak performance of the market, Cosmos (ATOM) was one of the few cryptocurrencies that registered positive performance. During the last 24 hours, the ATOM price has risen by more than 10% and has broken the $41 barrier.

The reason for the valuation was the recent results of Osmosis, a decentralized exchange (DEX) that operates in the network. According to DeFi Llama, DEX has reached the US$1.08 billion mark in Total Allocated Value (TVL). It also hit a record $95 million in daily volume.

As a result, both the ATOM and the DEX token (OSMO) operate at a high. However, OSMO has already surpassed its historic maximum. This Tuesday (4), its price surpassed the US$ 8 barrier, an increase of 7.56% in 24 hours.

OSMO token records historic highs.  Source: CoinMarketCap.

What to expect?

According to the four-hour chart, the ATOM has formed a bullish pattern over the past six weeks. This move actually materialized and, at first, brought the cryptocurrency to its first resistance (US$36).

For seven weeks, ATOM successively tested the $32.50 support. Until the last four days, the price finally started a sustainable appreciation. As a result, the cryptocurrency posted gains of 32% in this period, going from US$31 to the current value of US$41.66.

ATOM Analysis.  Source: Yash Majithia/TradingView.

The volume meter marked smaller tops than the previous ones, indicating a reversal of the uptrend. However, ATOM maintained its trajectory and, until the closing of this article, managed to hold support at US$ 41.

With the drop in volume, the buying force faces a hurdle at the $40.7 mark. If this support is broken, ATOM may restate the first major corrective support, forecast in the $37 range.

Finally, the Relative Strength Indicator (RSI) points to overbought, that is, the ATOm would be quoted above its fair price. Therefore, a short-term reversal followed by a correction should not surprise investors.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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