Altcoin project Cosmos (ATOM), with around 65% of its total supply being staked, is charting a similar chart to AVAX’s $100 journey, according to multiple analysts. Here are the forecasts and on-chain analysis…
ATOM graphic creates a bull flag
Cryptocoin. com
Let’s start with the following analyzes of Yashu Gola, whose analysis we shared as , commented on the bull trend:
The so-called “bullish flag” occurs when asset trends are falling as it bounces between two downward sloping trend lines. However, it eventually breaks out in the direction of its previous trend, with a profit target equal to the size of the previous uptrend, also known as the flagpole.
Therefore, the analyst says that in the positive scenario, if ATOM rises above the upper trendline of the flag, it could rise as high as $35. This sets a price target near $65 when measured from the current potential breakout point. The analyst says that this rise will be supported by the staking rate.
64% of total supply of altcoin project is staked
The bullish pattern on ATOM emerged as the token surged over 330% from June lows of $7.82 to approach this week’s high of $32. Data received by on-chain data source Messari shows that approximately 64% of the current ATOM supply is staked:
Analysts comment on the 64% stake:
- Pentoshi, an independent market analyst, says the increasing number of staked ATOM tokens has been instrumental in pushing the price upwards.
- , also nicknamed Twitterati, added that ATOM sellers lost momentum, citing two corrections that stalled in the fourth quarter due to higher buying pressure close to the token’s previous ATH levels.
AVAX graphic highlights the potential of ATOM
Another analyst, known by the nickname ‘Bluntz’, predicted that ATOM would continue its rise based on similar gains posted by one of the top blockchain competitors Avalanche (AVAX) earlier this year. Like Pentoshi, Bluntz sees a chance for ATOM to revisit its previous record level to continue its bull run. In a similar setup, AVAX rallied around 250% after finding solid footing in the $50 to $60 support area.
