The Cosmos Network (ATOM), a project aiming to connect different blockchains, faced a temporary outage after its v17 upgrade rollout on June 5th. While the issue resolved within four hours, it adds to a year of lackluster performance for ATOM. The coin’s price currently sits at around $8.60, trading within a horizontal support zone but struggling against a resistance trend line.
A Network Bump in the Road
Network outages aren’t ideal, but they’re not uncommon in the blockchain world. Solana, for instance, has experienced frequent outages throughout 2024. The key takeaway for ATOM investors is that the price remained relatively stable despite the Cosmos network’s hiccup.
ATOM’s Price Outlook: Bearish Clouds Gather
Looking at the bigger picture, ATOM‘s price has been on a downward trajectory since September 2022. A brief breakout in March failed to gain momentum, and the coin has settled back into a support zone around $8.60. Technical indicators on the weekly chart offer a mixed picture, with some suggesting a potential upward trend but lacking confirmation.
Daily Chart Hints at a Downward Spiral
The daily chart paints a more concerning picture. The price action following the March breakout indicates weakness. Instead of continuing its climb, ATOM fell back and is currently trading within an ascending parallel channel, a pattern often associated with corrective movements. This suggests a potential breakdown below the crucial $8.60 support level.
The price movement since April’s low also resembles a bearish A-B-C corrective pattern, further diminishing hopes of a sustained upward trend. Several technical indicators on the daily time frame echo this sentiment.
The Verdict: Tough Times Ahead for ATOM
Combining the weekly and daily charts, a breakdown from the $8.60 support area appears more likely than a breakout from the resistance trend line. This prediction hinges on ATOM’s ability to break free from its current short-term channel.
ATOM’s 2024 Struggles Continue
Unlike many other cryptocurrencies, ATOM has had a rough year. The recent network outage adds to its woes, and technical analysis suggests a potential price decline. A confirmed breakdown below $8.60 would solidify the bearish trend for ATOM in the near future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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