Cosmos tries to find support at $26 after a 45% drop in two weeks
Cosmos (ATOM/USD) is a project meant to solve the main challenges facing blockchain technology. It aims to eliminate the negative consequences of using blockchains such as environmental degradation, high cost of power, and increased processing time of transactions and data transfer.
On January 17th, 2022, Cosmos traded at the $44.4 mark and was one of the best-performing crypto assets for 2021. As 2021 started, Cosmos was trading at $4-$5 and reached a high of $44 before the year ended. This was more than a 1,000% return.
Out of that outstanding gains for 2021, markets have wiped out more than 45% of the value of this coin in less than two weeks.
Using pivot points analysis, it is clear that markets today opened around the support level S1 ($26), which is far outside the equilibrium level P ($30.5), where market participants believe is the fair price for the week. On such openings, the price will quickly trade back to equilibrium price before the main trend for the week takes over. Cosmos price is also trading above 9 and 21 days moving average, signaling heavy bullish pressure in the market.
The current market price is $28.270, and the weekly central pivot also offers some strong support to price, allowing bills to survive the bearish wrath from the last two weeks.
Where next for this coin?
If the price can float above $26 support, we might see some bullish pressure come into the market in the medium term to push the price to equilibrium for the week at the $30-$31 mark. However, most markets are still uncertain about the long-term direction. The general market is concentrated with interest rates risks from major central banks which may shift how financial markets have worked over the past three years.