Why is Cosmos going up: ATOM’s price consolidates as broader market rallies
- ATOM has failed to register notable gains over the past week.
- During the week, ATOM’s price has consolidated within the range of $27 and $31.
- Traders are waiting for significant price movements to take long or short positions.
Over the past week, the cryptocurrency market has registered a bullish sentiment. Most coins are on their way to recovery, having surged by significant levels. ATOM is mimicking the market performance, and it has been up by around 10% during the past 24 hours.
At the time of writing, Cosmos (ATOM/USD) was trading at $30.74, according to data from CoinGecko. The token is among the few that have performed well in Q1 2022, as it reached an all-time high of $44.45 on January 17.
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Cosmos is consolidating
The price of ATOM has consolidated during the past few weeks. After a brilliant performance at the beginning of the year, ATOM has cooled off, and now there is no clear indication of where the price will go next.
Most cryptocurrencies in the top 25 ranking have made double-digit gains during the past week. However, ATOM’s gains have failed to mirror those of other tokens. Over the past week, the price of ATOM has ranged between $27 and $31.
The token is stuck in a no-trade zone with ATOM trading between these levels. If this continues, the token’s price will continue to gain or lose within a consolidation range as traders wait to see any notable developments to take long or short positions.
ATOM could break out
The price of ATOM still has the potential to break out based on two factors, which are market conditions and trader behaviour. The market is currently rallying. If the bullish sentiment grows stronger, the buying pressure for ATOM could peak, at which point the token could break out and target the higher levels of $35.
If ATOM breaks past $35, traders on the sidelines could rush in and propel the token towards $44 and beyond, creating a new all-time high.
On the other hand, the market support could slump, and ATOM could plunge. ATOM’s selling pressure will increase if the price goes below $25. This price could create a bearish sentiment for the token, and if traders decide to dump it, the token’s price will drop further towards the lows of $21.