The Cosmos price is bouncing back after crashing hard earlier this week. The coin jumped to $26.70, which was the highest level since May 7. The cryptocurrency has a total market capitalization of more than $5.8 billion, making it the 31st biggest cryptocurrency in the world. It is slightly above Tezos and slightly below Tron.
Is Cosmos crypto a good investment?
Cosmos is a blockchain project that describes itself as as an ever-expanding ecosystem of interconnected applications and services. Developers connect their applications using an Inter-Blockchain Communication (IBC) protocol. ATOM is the native token for the ecosystem.
Today, the network is home to more than 250 applications that have a combined asset under management of more than $105 billion. Today, some of the most popular coins in the network are Binance Coin, Terra, ThorChain, KuCoin Token, and Osmosis, among others.
The most recent platform in the Cosmos ecosystem is Gravity DEX protocol, which is secured by more than $3 billion of assets.
Analysts expect that the Cosmos ecosystem will keep growing in the near term as developers take advantage of its fast speed and efficiency. But is ATOM a good investment?
Cosmos price prediction
The daily chart shows that the ATOM price has been bouncing back after falling substantially this week. A closer look at the chart shows that the coin has formed a cup and handle pattern. It is currently forming the cup section, whose upper part is at its all-time high of $32. The coin remains above the 25-day and 50-day exponential moving averages (EMA).
Therefore, I suspect that the Cosmos price will maintain the bullish trend as bulls target the key resistance at $32, which is about 32% above the current level. On the flip side, a move below the key support at $17.50 will invalidate this view.
Read More: ATOM Could Soon Explode Higher