Cosmos (ATOM) has risen from $3.66 to $4.73 since September 08, 2024, with the current price standing at $4.55.

This upward trend indicates strong market buying pressure, showing that traders are optimistic about the future of Cosmos (ATOM).

But what’s next for Cosmos (ATOM), and what can we expect for the remainder of September 2024?

Today, CryptoChipy will provide Cosmos (ATOM) price predictions based on both technical and fundamental analysis. Keep in mind that there are other factors to consider when taking a position, such as your time horizon, risk tolerance, and margin if trading with leverage.

Cross-Blockchain Data and Token Transfers

Cosmos is a decentralized network designed to facilitate seamless data and token transfers across different blockchains, allowing them to remain independent while communicating with one another. Before Cosmos, blockchain networks couldn’t interact with each other, but Cosmos’s technology enables the smooth transfer of assets and data between blockchains.

To allow different blockchains to communicate and transact, Cosmos uses the Inter-Blockchain Communication (IBC) protocol. This protocol enables the transfer of data and assets between various blockchains within Cosmos and even to external blockchain networks.

Cosmos stands out for its scalability, made possible by its unique consensus algorithm, Tendermint. Unlike traditional proof-of-work (PoW) systems like Bitcoin, Tendermint is energy-efficient and highly scalable, allowing Cosmos to handle larger transaction volumes with greater efficiency.

The ATOM token plays a critical role in the Cosmos network by enabling smooth communication between the various zones within its ecosystem. It is used for staking, holding, transferring, and spending. ATOM holders also have the ability to vote on network upgrades and decisions, with their voting power proportional to the amount of ATOM staked.

The Federal Reserve’s Actions Boost Cryptocurrencies

Like many other cryptocurrencies, Cosmos (ATOM) benefited from Bitcoin’s recent surge above $64,000, with ATOM increasing nearly 30% in just a few days. This performance surprised many market analysts as a range of crypto assets saw positive inflows during the second week of September.

Many attribute this recent surge to the Federal Reserve’s decision to start its monetary easing cycle last week and its forecast for additional interest rate cuts in the near future. The Federal Open Market Committee (FOMC) lowered the benchmark Fed funds rate to a range of 4.75% to 5%, signaling confidence in the economic recovery and easing inflationary pressures.

The Federal Reserve’s decision to lower interest rates makes borrowing cheaper, which stimulates consumer spending and helps fuel economic growth. As borrowing costs decrease, more liquidity flows into the market, making riskier assets like cryptocurrencies more attractive to investors, thereby driving up their value.

Insights from eToro Experts

Bret Kenwell, an investment analyst at eToro, commented:

“Markets have responded well to the Fed’s recent messaging. They wanted reassurance that the economy isn’t heading into a recession, and Chair Powell affirmed that the economy is in good shape. A soft landing is still the expected scenario. However, there are concerns that the labor market may shift from a period of softness to weakness.”

The Fear & Greed Index, a popular gauge of market sentiment in the cryptocurrency space, has risen in recent days, reflecting a strong interest and confidence from investors.

Cosmos (ATOM) will continue to be influenced by broader market conditions, so anyone considering an investment in ATOM should conduct thorough research and assess their risk tolerance.

Cosmos (ATOM) Technical Analysis

Since September 08, 2024, ATOM has moved from $3.66 to $4.73, with the current price at $4.55. While traders are currently bullish on Cosmos, it’s important to note that the price could easily dip below its current levels.

The chart below highlights the key resistance level, and as long as ATOM remains below this level, we cannot consider it a trend reversal. In fact, ATOM’s price remains in the SELL-ZONE.

Key Support & Resistance Levels for Cosmos (ATOM)

In this chart, I’ve highlighted key support and resistance levels since February 2024 to help traders anticipate potential price movements.

Looking at a larger time frame, ATOM is still under pressure. However, if the price manages to break above $6, the next key resistance could be around $8. On the downside, there’s solid support at $4. If ATOM falls below this level, it could trigger a sell signal, potentially pushing the price down to $3.5.

Reasons Behind the Potential Rise of Cosmos (ATOM)

Traders are currently optimistic about Cosmos (ATOM), and if its trading volume continues to rise, buying pressure could push the price higher.

The recent Federal Reserve decision to lower interest rates has also boosted cryptocurrencies by making riskier assets, like digital currencies, more appealing. With lower borrowing costs, there’s increased market liquidity, encouraging more investment in cryptocurrencies as investors seek higher returns.

Indicators of a Possible Decline in Cosmos (ATOM)

Cosmos focuses on interoperability between blockchains, but it faces rising competition from projects like Polkadot, Avalanche, and Ethereum Layer 2 solutions, which may offer better solutions in the future.

The price of ATOM is also influenced by market sentiment, regulatory changes, and macroeconomic trends. While ATOM is currently above its $4 support level, if it breaks below this, it could fall further to test the next support at $3.5.

Expert and Analyst Opinions

Cosmos (ATOM) has remained strong, especially after Bitcoin’s price exceeded $64,000, with ATOM increasing nearly 30% in just a few days. Analysts attribute this recent surge to the Federal Reserve’s decision to initiate its monetary easing cycle and forecasts of further interest rate cuts in the coming months. Lower interest rates have made riskier assets like cryptocurrencies more attractive, boosting their value.

With borrowing costs reduced, market liquidity has increased, prompting more investors to turn to higher-return assets like crypto. Experts believe that if Bitcoin’s momentum continues, it will likely have a positive impact on ATOM’s price and the wider crypto market.