This week has seen a number of cryptocurrencies climb up on the buying and selling chart as one other bullish flag correction is fashioned. The ATOM token of the Cosmos blockchain is among the greatest performers within the final 24 hours. Understanding bull runs will be snipped at any level, this text examines the Cosmos challenge and examines whether or not the time is correct to purchase ATOM and maintain.
Cosmos: Web Of Blockchains
Fondly referred to as the “Web of blockchains,” the Cosmos community goals to attach crypto networks via open-source instruments. Cosmos’ precedence is to realize interoperability between tasks within the crypto business. This allows them to share information and tokens simply, with no central get together facilitating the exercise.
The Cosmos community consists of many impartial, parallel blockchains, referred to as zones. Every zone is powered by Tendermint, the classical Byzantine fault-tolerant (BFT) consensus protocol.
The muse of the Cosmos blockchain, additionally referred to as the distributed ledger, is the Cosmos Hub. The ATOM token is the utility token of the Cosmos blockchain. The crypto can be utilized to pay charges, as a staking token, and as a voting mechanism in governance. Token holders can bond with ATOM to earn block rewards.
Cosmos was launched in 2019 after its preliminary coin providing (ICO). Founders embody Jae Kwon, Zarko Milosevic, and Ethan Buchman, who’re additionally the co-founders of Tendermint.
ATOM Prepared To Go Greater
The ATOM token began the yr buying and selling at simply $5.868 earlier than reaching an all-time excessive worth of $32.14 in Could this yr. Nevertheless, the crypto crash triggered the asset to say no to $11.74 by the top of Could.
ATOM continued to drop and traded for $8.97 on June 22, 2021. However this modified in the direction of the top of July. The digital asset reached a worth of $12.61 on July 31, and this constructive momentum has spilled over into August. Ranked forty first by market cap, ATOM is at present buying and selling at $24.93, marking a 23.9% enhance within the final 24 hours. The token remains to be low-cost and the current bounce in worth is an effective sign for traders to purchase ATOM.
ATOM Technical and Basic Evaluation
Cosmos’ worth is wanting wholesome on the buying and selling chart. The governance token is buying and selling above the 20-day and 200-day shifting common (MA) assist worth at $18.99 and $17.45, respectively.
The relative power index (RSI) at present trades on the overbought area of 72.15, which signifies that many traders are out there to purchase ATOM.
That is confirmed by the crypto forecast web site Pockets Investor, which believes that ATOM would go up and commerce at $32.490 in a single yr. In response to the prediction web site, ATOM is predicted to commerce at $81.339 in 5 years.
This month has seen the rising adoption of the Cosmos Venture as a number of decentralized finance (DeFi) protocols have launched on the community.
The constructive momentum for the Cosmos challenge is attributed to the current unveiling of the Gravity DEX (decentralized change) upgrade final month. The Gravity DEX is a web based market for buying and selling tokens from any linked blockchain, reinforcing Cosmos’ imaginative and prescient of bringing collectively a number of interconnected blockchains.
The primary-ever protocol to be launched on the Gravity DEX referred to as Emeris launched this month, enabling customers to start out experiencing the DEX. The launch of Emeris launched cross-chain change capabilities to the members of the Cosmos group and led to a spike in demand for the ATOM token.
Customers can entry many cross-chain DeFi protocols on the Cosmos community via the brand new interface, thereby opening up alternatives.
One other vital improvement that occurred lately on the Cosmos blockchain is the integration of Omni- chain DEX Sifchain with the Inter-blockchain communication (IBC).
This integration would assist join and allow trades between the Cosmos ecosystem and the Ethereum community.
As a part of Cosmos’s imaginative and prescient to convey interoperability amongst totally different networks, the platform partnered with Interlay. The partnership would make it potential to convey Bitcoin to all DeFi chains, thereby making it potential for customers to speculate, earn and pay utilizing their Bitcoin anyplace.