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The Cosmos (ATOM/USD) price broke down from a rising channel this week as cryptocurrencies reacted to the regulatory crackdown on stablecoins, particularly orders against Paxos to cease issuing the Binance USD (BUSD) stablecoin.
ATOM price has not spiked as much as the leading cryptocurrencies like Bitcoin and Ethereum, which on Wednesday, hit levels above $23,000 and $1,600 respectively. Today’s lack of major action for the Cosmos ecosystem token comes despite the announcement of significant network development scheduled for 8:00 pm ET on 15 February 2023.
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Cosmos (ATOM) price outlook
ATOM currently trades around $13.69, roughly 1% up in the past 24 hours, but over 8% down this past week. So, is the Cosmos token a buy ahead of the mentioned network event?
After reaching highs of $15.44 with a breakout from a major descending trendline, the price of Cosmos’ native token ATOM slipped and touched lows of $12.68 on Coinbase on Monday. But while ATOM/USD traded towards the descending line upon hitting the resistance area, the past two days have seen green candles.
Notably, Monday’s breakdown to current levels leaves ATOM vulnerable to fresh rot, if sentiment turns negative (see the chart below).
However, if bulls hold at the crucial $13.00 price level, a break above the channel’s lower trendline – now the new resistance – amid broader positivity across the market could bring the 0.618 Fib retracement level at $13.88 and then recent highs around $15.40 back into play.
Break lower and the immediate support zones are around the 0.5 Fib retracement level ($12.86) and the 0.382 Fib retracement ($11.83). The main support level could be around $10.50.
Rho upgrade set for Cosmos mainnet
As noted above, the Cosmos price has largely not reacted to the news that the highly anticipated network upgrade dubbed Rho is set for mainnet launch.
But this is massive news for Cosmos, with Rho the Hub’s last major upgrade ahead of Cosmos’ Replicated Security release. This will pave the way for Interchain Security, expected in the first quarter of 2023 and whose added security will open up the ecosystem for more consumer chains.
The Rho upgrade is scheduled for block height 14,099,412.