Cosmos (ATOM) Rallies to All-Time Highs Despite Crypto Sell-Off

ATOM, which is a native token of Cosmos, has recently made an attempt to get above the $45 level amid strong crypto market pullback which has pushed leading coins to multi-week lows.

ATOM Gains Ground As Traders Search for Promising Alternatives Amid Crypto Pullback

Cosmos is a decentralized network which provides developers with an opportunity to create interoperable blockchains. Put simply, Cosmos’ goal is to establish communication between various blockchains.

Cosmos also boasts low energy consumption, which may serve as an important longer-term catalysts if crypto traders begin to pay more attention to the environmental impact of cryptocurrencies.

It looks that traders are using the current crypto market pullback as an opportunity to switch some funds into promising projects which can challenge crypto leaders like Bitcoin and Ethereum.

According to CoinMarketCap, Cosmos is the 21st biggest cryptocurrency in the world with a market cap of $9.6 billion. The recent rally will improve the project’s visibility for traders, and ATOM’s strength amid crypto market pullback may attract new buyers.

ATOM Looks Ready To Get Above the $45 Level

ATOM has recently made an attempt to settle above the resistance at all-time highs near the $45 level but failed to develop sufficient upside momentum and pulled back.

In case ATOM manages to stay above $43.30, it will get to another test of the resistance at the $44 level. A move above the $44 level will push ATOM towards recent highs near $44.70. In case ATOM settles above this level, it will gain strong upside momentum and get above the $45 level.

On the support side, a move below $43.30 will push ATOM towards the support level at $41.50. There are no important levels between $41.50 and $43.30 so this move may be fast in case traders decide to take profits after rally. If ATOM settles below the support at $41.50, it will head towards the next support at $40.70.

Taking a look at H1 chart, we can see that RSI pulled back into the moderate territory, so ATOM has a good chance to gain additional upside momentum in the near term.