{"id":450440,"date":"2022-05-20T15:44:08","date_gmt":"2022-05-20T12:44:08","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cosmos-price-rebounds-45-in-one-week-despite-terras-debacle-whats-next-for-atom\/"},"modified":"2022-05-20T15:44:08","modified_gmt":"2022-05-20T12:44:08","slug":"cosmos-price-rebounds-45-in-one-week-despite-terras-debacle-whats-next-for-atom","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cosmos-price-rebounds-45-in-one-week-despite-terras-debacle-whats-next-for-atom\/","title":{"rendered":"# Cosmos price rebounds 45% in one week despite Terra&#8217;s debacle \u2014 What&#8217;s next for ATOM?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3fbf6d3d612\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3fbf6d3d612\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cosmos-price-rebounds-45-in-one-week-despite-terras-debacle-whats-next-for-atom\/#%E2%80%9D_Cosmos_price_rebounds_45_in_one_week_despite_Terras_debacle_%E2%80%94_Whats_next_for_ATOM_%E2%80%9C\" >&#8221; Cosmos price rebounds 45% in one week despite Terra&#8217;s debacle \u2014 What&#8217;s next for ATOM? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/cosmos-price-rebounds-45-in-one-week-despite-terras-debacle-whats-next-for-atom\/#Cosmos_TVL_down_from_10M_to_155K\" >Cosmos TVL down from $10M to $155K<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/cosmos-price-rebounds-45-in-one-week-despite-terras-debacle-whats-next-for-atom\/#ATOM_price_rebound_sustainable\" >ATOM price rebound sustainable?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/cosmos-price-rebounds-45-in-one-week-despite-terras-debacle-whats-next-for-atom\/#Bullish_reversal_scenario\" >Bullish reversal scenario<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Cosmos_price_rebounds_45_in_one_week_despite_Terras_debacle_%E2%80%94_Whats_next_for_ATOM_%E2%80%9C\"><\/span>&#8221; Cosmos price rebounds 45% in one week despite Terra&#8217;s debacle \u2014 What&#8217;s next for ATOM? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Cosmos (ATOM) emerges as the biggest gainer among the top cryptocurrencies this May 20, brushing aside the fears about its association with Terra (LUNA), an algorithmic stablecoin project whose market valuation fell by 99% last week.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cosmos_TVL_down_from_10M_to_155K\"><\/span>Cosmos TVL down from $10M to $155K<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>ATOM&#8217;s price increased by over 10% intraday to almost $12. The gains <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared as a part of a broader upside retracement that started on May 12 when it had fallen to its eleven-month low near $8. That marked around a 45% price recovery in almost a week.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/ba3a5abc-681c-4257-94ad-e90760b6740c.png\"><figcaption style=\"text-align: center;\"><em>ATOM\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The ATOM price rebound occurred despite its parent chain, Cosmos Hub, witnessing massive capital outflows from its liquidity pools. Notably, the total value locked (TVL) with Cosmos dropped to around $155,000 on May 20, compared to its year-to-date high of over $10 million, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defillama.com\/chain\/CosmosHub\">according<\/a> to Defi Llama.\u00a0<\/p>\n<p>Terra emerged as one of the primary reasons behind the drop since its liquidity pools made up 92% of the overall Cosmos TVL as of May 9. But\u00a0on May 20, the project&#8217;s stake in the Cosmos ecosystem was just around 17%.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/42b279b8-513e-4617-bea7-9e031f61adde.png\"><figcaption style=\"text-align: center;\"><em>Cosmos TVL distribution. Source: Defi Llama<\/em><\/figcaption><\/figure>\n<p>Meanwhile, a hawkish Federal Reserve had also contributed to the selloff across riskier assets last week, hurting cryptos like Bitcoin (BTC), Ether (ETH), and ATOM in tandem, as Cointelegraph covered.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ATOM_price_rebound_sustainable\"><\/span>ATOM price rebound sustainable?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From a technical perspective, ATOM remains at the risk of continuing its decline in Q2\/2022.<\/p>\n<p>First, the Cosmos token&#8217;s 45% rebound accompanies a drop in its trading volumes, suggesting a low trader turnout behind the rally that, in turn, could lead to a price reversal. Second, the price appears to have formed an ascending triangle, a trend continuation indicator, as shown in the chart below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/6510e6a9-eeac-47a2-9b54-ae913b7b534d.png\"><figcaption style=\"text-align: center;\"><em>ATOM\/USD four-hour price chart featuring ascending triangle setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>As a rule of technical analysis, ascending triangles formed during a downtrend resolve after the price breaks below their lower trendline and continue falling until it reaches the level at length equal to the triangle&#8217;s maximum height. <\/p>\n<p>Applying the same theory on Cosmos shifts ATOM&#8217;s downside target to $7.50 with the breakdown point around $10.35.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bullish_reversal_scenario\"><\/span>Bullish reversal scenario<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In some cases, however, ascending triangles in a downtrend could lead to a trend reversal instead of continuation. Therefore, the bulls could attempt a breakout with a run-up to the triangle&#8217;s upper trendline near $12.50.<\/p>\n<p><strong><em>Related:\u00a0Contrarian Bitcoin investors identify buy zones even as extreme fear grips the market<\/em><\/strong><\/p>\n<p>ATOM&#8217;s likelihood of continuing its recovery is high if this occurs particularly with increasing trading volume. In doing so, the upside target for ATOM\/USD could again be at the length equal to the maximum distance between the triangle&#8217;s upper and lower trendline, as shown below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/8f57ff17-434c-4d5a-8795-f03a3a796586.png\"><figcaption style=\"text-align: center;\"><em>ATOM\/USD four-hour price chart featuring ascending triangle&#8217;s reversal setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>In other words, the bullish scenario puts ATOM&#8217;s price en route to $17.25 by June, up around 45% from May 20&#8217;s price.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Cosmos TVL&#8230;<\/p>\n","protected":false},"author":1,"featured_media":450441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvMjFiOGVlOGEtMWQ5ZS00NjQ1LTg5N2ItMjEzNjQ2YmNjNGQ2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,79806,107431,81262,74983,74939,75679,75150,75164,75493,78261,122378,20093,73711,73785,71407],"class_list":["post-450440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-analysis","tag-cryptocurrency-investment","tag-cryptomarket","tag-decentralization","tag-market-analysis","tag-market-capitalization","tag-market-update","tag-price-analysis","tag-stablecoin","tag-tech-analysis","tag-terra","tag-cosmos","tag-investments","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/450440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=450440"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/450440\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/450441"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=450440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=450440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=450440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}