• Traders believe ATOM will eventually reach $100, similar to AVAX

  • Cosmos (ATOM) has the potential to make significant gains in the coming weeks, owing to a bullish continuation pattern on its longer-term chart.

    The structure, known as a “bull flag,” appears as the asset falls while bouncing between two downward sloping trendlines. However, it eventually breaks out of the range in the direction of its previous trend, with a profit target equal to the length of the previous uptrend, also known as the flagpole.

    As a result, in a “perfect” world, if ATOM breaks above the flag’s upper trendline (due to an increase in trading volume), it could rise by as much as the height of the flagpole, which is around $35. When measured from the current potential breakout point, this establishes a price target near $65 per share.

    Almost 64% of ATOM’s total supply is staked.

    The bullish setup in ATOM emerged as the token rose more than 330 percent from its June low of $7.82 to this week’s swing high near $32.

    Circulating token scarcity may be a factor driving buyers into the market. Messari’s data revealed that nearly 64 percent of the current ATOM supply is staked.

    According to data, Cosmos investors have staked over 180 million ATOM tokens to become validators on the company’s ‘Cosmos Hub,’ a proof-of-stake blockchain that serves as one of the network’s hubs. Users receive a portion of the network transaction fees and block rewards in exchange.

    According to Pentoshi, an independent market analyst, the increasing number of staked ATOM tokens has played a role in driving up the price of the token.

    The pseudonymous Twitterati went on to say that ATOM sellers have been losing steam, citing two corrections in the fourth quarter that were halted in the middle due to increased buying pressure near the token’s previous all-time high levels.

    ATOM, according to the analyst, is seeing clear:

    “Indications of absorption”

    ATOM’s potential is highlighted by the avalanche fractal.

    Another analyst, known as ‘Bluntz,’ predicted that ATOM would continue its upward trend based on similar gains made by one of its top blockchain rivals, Avalanche (AVAX), earlier this year.

    Bluntz, like Pentoshi, sees ATOM’s chance of revisiting its previous record-high as a base from which to continue its bull run. AVAX rallied nearly 250 percent in a similar situation after finding a solid footing inside the $50 to $60 support zone.

    ATOM, according to Bluntz, could easily reach $100 in the medium term.

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