Can ATOM make history with an AVAX-like orbit?

The most recent flash crash put the crypto market in a tailspin. As a result, its total capitalization dropped nearly 15% to $ 2.3 trillion. In fact, most of the market appears to be flashing red signals with the exception of a few altcoins.

However, ATOM shows a rather strange case. During the early bear market, Cosmos Altcoins were adamant not to give way to the overall trend. But then the price quickly gave way and moved south.

It can be said that the downward momentum with ATOM came later than with other altcoins. Basically, the price could be held well while the market was in turmoil. On December 3rd and 4th, ATOM rose nearly 30%. However, the price fell shortly thereafter and moved below the critical support / resistance level of $ 25.5. At the time of writing, the 30th largest altcoin by market cap is trading at $ 23.96, down nearly 3% over the past 24 hours.

ATOM 4-Hour Price Chart | Source: Tradingview

The question right now is where can ATOM go from here?

Evaluate the possibility of a price increase

Over the past year, the Cosmos ecosystem has expanded rapidly, with the number of transfers between blockchains increasing sharply. At the same time, the increasing number of decentralized applications is also driving the transaction volume on this blockchain. In addition, the number of chains connected via IBC is also higher than in the previous month.

In particular, projects like Terra, which are based on the Cosmos SDK and Crypto.com Coin, saw significant growth in the past month.

In addition to the huge network of trustworthy blockchains running on Cosmos, the dynamics of supply also support the price. In addition, more than 63% of the total ATOM supply is staked, resulting in a shortage of tokens in circulation, which plays an important role in motivating buyers to enter the market.

Source: Messari

The increased supply-demand momentum has helped ATOM climb more than 300%, from a June low of about $ 8 to nearly $ 24 at press time.

Similar course as AVAX

After holding up well for several days, the ATOM price collapsed. However, given the returns at the time of writing, ATOM recovery could be faster.

Interestingly, the anonymous analyst Bluntz noted a similarity between the pricing structure of ATOM and AVAX and predicted that ATOM could skyrocket. According to the analyst, the cryptocurrency has a similar development to AVAX earlier this year.

Source: Bluntz Twitter

Bluntz also noticed an interesting fractal between the two orbits. The analyst observes that AVAX is bullish in a similar setup, close to 250% after finding solid support in the $ 50 to $ 60 range.

The ATOM futures and perpetuals markets look promising as the open interest peaks rise 10.32% and 6.03%, respectively. Coinlyze. The growth on the futures market could drive up spot prices.

Even so, many wonder if ATOM is a good investment choice at this point in time.

ATOM’s growth outlook looks positive, but prices need to be driven above the $ 30 mark by retail investors. The volume of trade still didn’t show the excitement from the retail sector. As a result, once these people are interested again, the price could go up.

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