ATOM remained an exception to the general downtrend of the crypto market for a couple of days as it continued to gain despite heavy price fluctuations of other tokens.
The Ethereum Merge took place successfully on September 15th, marking a historic moment in the history of crypto. However, just as some analysts predicted, it did not result in a spike as optimists have forecasted. In fact, most cryptos, including ETH, and BTC, experienced a downturn at the same time. This confirmed the “Buy the rumor, sell the news” tag; crypto analysts conferred on the event in advance.
Related Reading: XRP Price Rallied 7%, Is It Gearing To Test The Next Resistance?
Nonetheless, one token continued to stand out amidst the bearish market trends, the native crypto of the Cosmos protocol. Despite the extreme market fluctuations, ATOM continued to glide upward, gaining up to 20% in 48hours. ATOM is trading below $16 at the time of writing, still above more than 10% of its pre-merge price of $14. The Cosmos native token has been experiencing its up and downs in an ever-ascending trendline, unlike the wider market.
ATOM Gains Were Due To IBC and Staking Opportunities
The recent gains lead back to the influx of protocols migrating to the Cosmos blockchain. After the crash of the Terra ecosystem, several projects rebuilt their operations on Cosmos Hub. Consequently, each project adds value to ATOM by participating in the inter-blockchain security system IBC.
Cosmos also offers staking opportunities with a lucrative APY of close to 18%. Furthermore, the network is introducing different utilities into its ecosystem, which will increase the value of ATOM going forward. One of these is the liquidity staking the protocol is ready to launch. Additionally, protocols on Cosmos are preparing to launch their own stablecoins, with ATOM most likely the primary assets for minting.
Recent Macroeconomic Events Contribute to Increased Market Volatility
Meanwhile, recent macroeconomic events have increased bearish pressure on the digital assets market. As cryptos struggle to breach various price barriers and flip bullish, these factors bear down, causing the assets to fluctuate. Events like the recent release of the August inflation data reveal the continued rise of inflation.
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Ethereum, for instance, has been rising and falling within the $1,700 and $1,500 range in the past seven days. Its volatility curve has been on a downward trend for the past week. The second largest crypto by market cap is down 11% since the Merge. ETH is currently trading below $1,500. As for Bitcoin, the crypto dropped below the $21,000 zero mark on Thursday in response to the Tuesday inflation data release. The first coin has been trading inconsistently within the range of $19,000 to $23,000. BTC is trading at above $20,000 at the time of writing.
Featured image from Pixabay and chart from TradingView.com
Cosmos (ATOM) In Green While Entire Market Bleeds
A day after the much-anticipated Merge, many cryptocurrencies have lost more than they gained. The entire market is red, and even the top performers are not showing signs of price gains. Many investors predicted a downtrend reversal after Ethereum’s upgrade to a proof-of-stake mechanism.
But right now, the reverse is the case. For instance, the number one crypto has remained red in its 1 hour, 24 hours and 7 days price gains. Currently, the Bitcoin price is $19.659.95 representing a 2% loss in 24 hours.
Related Reading: Ethereum Faces Test Of Survival After Merge, Can $1,400 Support Hold?
September 16 data shows that Bitcoin lost 0.61% in 1 hour, 1.88% in 24 hours and 6.26% in 7 days.
Apart from Bitcoin, Ethereum has lost more. ETH’s price is currently at $1,451.49, showing a move away from the previous $1700+. The Merge hasn’t resulted in the price push as many expected.
But while many cryptos are recording pullbacks in prices, Cosmos ATOM has continued its gains.
Cosmos ATOM Gains Amid Price Crash
Cosmos ATOM price currently stands at $16.16 after adding 11.49% in the last 24 hours. The coin ranks number 20 on the CoinMarketCap crypto ranking. ATOM has recorded some price growth in this period, even when others struggle.
Its price chart today, September 16, showed a continuous rise in green. There were some dips, but not to the red zone. For instance, ATOM’s price stopped at $14.65 on September 15. This morning, it rose to $14.73 and continued climbing until its current price of $16.16 at press time.
Analysts studying the price movement have noted that ATOM highs and lows remained within the ascending channel trendlines. Also, the price recorded a bull break outside the channel and tapped a 200-day moving average before correcting to the midline and 20-MA, confirming each support.
After testing the support, ATOM price continued its uptrend and is trading in the current range topside. Analysts believe it might retest the 200-day MA to flip its level to support.
What Factors Are Pushing Cosmos Coin
Many factors could be linked to the growth of ATOM. One such event is the move of many protocols from Terra to Cosmos Hub SDK. In early September, Delphi Digital announced it would build new projects on the Cosmos network.
As more DeFi protocols and decentralized apps (DApps) flood the ecosystem and participate in its interchain security system, ATOM value skyrockets. The AMMs, DeFi, and DApps operating on the network boost staking and fees, thereby increasing stakers rewards.
Related Reading: Why Cardano (ADA) Could Be Registering Another Decline, Analyst Explains
Data reveals that ATOM offers 17.75% APY, and 66.75% of the coins in circulation are staked. Also, Cosmos is planning to launch a liquid staking feature that will increase buy pressure on ATOM when deployed in DeFi platforms across blockchains.
All these increased activities in the ecosystem are pushing ATOM prices upwards. Analysts expect to see more gains as the network grows.
Featured image from Pixabay and chart from TradingView.com
TA- Cosmos Could Be Set For A Wild Rally Ahead Of Crucial Breakout
The price of Cosmos (ATOM) could be set for a wild rally with a potential breakout against Tether (USDT) ahead of summer relief for altcoins.
Ethereum price saw a relief bounce from $1,600 to $1,800 ahead of merge sentiments leading to other altcoins like Cosmos breaking out in price. (Data feeds from Binance)
Price Analysis Of ATOM On The Weekly Chart
From the chart, the price of ATOM saw a weekly low of around $6.5, which bounced from that range and rallied to $11.3.
The price has built more momentum as it faces resistance at $17.
If the price of ATOM on the weekly chart continues with this bullish structure, it could quickly hit the $17 mark.
The volume shows decent buy bids, pushing the price of ATOM higher.
Weekly resistance for the price of ATOM – $17.
Weekly support for the price of ATOM – $6.5.
Price Analysis Of ATOM On The Daily (1D) Chart
The price of ATOM found strong support at around $6.2, with what seems to be an area of interest on the daily chart.
ATOM bounced from its support, forming a bullish trendline that acts as a support and has continued to maintain this structure.
At the point of writing, the price of ATOM is at $12, trading above the 50 exponential moving averages (EMA), which corresponds to the support at $10.
If the 50 EMA region fails to hold the price, $9 would be a good support to hold sell-offs and for a possible price bounce.
With more buy bids, we could see the price of ATOM retesting at $16 -$17, which has been resistance on the daily chart.
The RSI for ATOM price on the daily chart is 65, indicating healthy buy bids for ATOM.
The volume for ATOM looks good, indicating positive signs for ATOM prices to trend higher.
Daily (1D) resistance for ATOM price – $17.
Daily (1D) support for ATOM price – $10, $9.
Price Analysis Of ATOM On The Four-Hourly (4H) Chart
The price of ATOM has shown a bullish breakout from a symmetric triangle on the 4H chart, with the price closing above it.
ATOM has struggled in this region, forming a range in a triangle with price rejecting from $11.5.
ATOM price is $12, trading above the 50 & 200 EMA with prices of $10.7 and $10 on the 4H chart. These prices would act as support areas for ATOM on the 4H chart.
Four Hourly (4H) resistance for ATOM price – $16.
Four hourly (4h) support for ATOM price – $10.7, $10.
A break below these support zones could send the price of ATOM to a region of $9, acting as a good support area.
Featured image from NewsBTC, Charts from TradingView.com
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