Cosmos (ATOM) Price Displays Intense Momentum – What’s Driving The Rally?

0 6

Cosmos (ATOM) demand has risen these past few days, resulting in a significant performance. According to CoinMarketCap data ATOM price has fallen to $11.69 after gaining momentum.

The current market cap of ATOM is $3.3 billion, with a 24-hour trading volume of $100 million. However, the trading volume is still down by 31.18%, indicating reduced network activity. 

Reason Behind The Surge In Cosmos?

Cosmos is a constantly growing network of interconnected blockchains created with developer-friendly application components. 

Inter-Blockchain Communication (IBC) protocol is the technology that connects these apps. The SDK platform Cosmos offers allows programmers to produce top-notch decentralized apps (dApps).

Other developers have also constructed applications on top of it, such as MM Finance and VVS Finance. Cosmo’s (ATOM) recent price surge could be attributed to its influx of developers topping that of Ethereum. 

The other reason for the ATOM price increase might be the announcement from dYdX that it is building an independent blockchain on the Cosmos ecosystem instead of Ethereum.

Also, Bitcoin price soared above $29,000, pushing the market cap of all cryptocurrencies to surpass $1 trillion. Many crypto assets, including ATOM, recorded price growth due to correlation to BTC. 

ATOM Price Action

Below is the technical analysis of ATOM price action on the 4-hour trading timeframe. And also the possible resistance and support zones.

Cosmos has broken through the short-term resistance level of $11.69 and is currently trading between $10.571 and $15.484 support and resistance levels. ATOM must break through the $15.484 primary resistance level to confirm the bullish momentum.

Cosmos (ATOM) Price Displays An Intense Momentum, What's Driving The Rally?

knife

However, the bears are trying hard to break the $10.571 support level but couldn’t due to the high bullish momentum. If the bull’s strength is not strong enough to push ahead, the bears might take over the trend and cause a trend reversal.

What Do The Technical Aspects Suggest?

ATOM’s 50-Day SMA’s change in direction caused the market’s structure to change. If the bullish momentum doesn’t pick up, the trend may change to a potential bearish market. 

The 50-Day SMA established a Death Cross by crossing below the 200-Day SMA, indicating a potentially bearish signal and suggesting a selling opportunity.

The Relative Strength Index (RSI) analysis indicator enables traders to determine the momentum and strength of the price movement of an asset within a period.

At the time of analysis, the RSI of ATOM/USDT is at 61.74 above the neutral zone. Therefore, this shows that ADA is neither in the overbought nor oversold zone. However, the buyers are building momentum to take ADA to the overbought zone while the seller pushes it down despite weak momentum.

Featured image from Forkast News and Chart: TradingView

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 70,472.88
ethereum
Ethereum (ETH) $ 3,572.05
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 588.44
solana
Solana (SOL) $ 188.19
staked-ether
Lido Staked Ether (STETH) $ 3,558.10
xrp
XRP (XRP) $ 0.62243
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.216624
cardano
Cardano (ADA) $ 0.64864
avalanche-2
Avalanche (AVAX) $ 54.33
shiba-inu
Shiba Inu (SHIB) $ 0.000031
the-open-network
Toncoin (TON) $ 4.89
polkadot
Polkadot (DOT) $ 9.44
bitcoin-cash
Bitcoin Cash (BCH) $ 578.05
chainlink
Chainlink (LINK) $ 19.06
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 70,509.89
tron
TRON (TRX) $ 0.120659
uniswap
Uniswap (UNI) $ 12.79
matic-network
Polygon (MATIC) $ 1.00
internet-computer
Internet Computer (ICP) $ 17.66
near
NEAR Protocol (NEAR) $ 7.10
litecoin
Litecoin (LTC) $ 94.63
aptos
Aptos (APT) $ 17.16
leo-token
LEO Token (LEO) $ 6.01
blockstack
Stacks (STX) $ 3.56
filecoin
Filecoin (FIL) $ 9.40
dai
Dai (DAI) $ 0.999182
cosmos
Cosmos Hub (ATOM) $ 12.24
ethereum-classic
Ethereum Classic (ETC) $ 32.41
arbitrum
Arbitrum (ARB) $ 1.66
render-token
Render (RNDR) $ 11.00
immutable-x
Immutable (IMX) $ 2.93
crypto-com-chain
Cronos (CRO) $ 0.153602
stellar
Stellar (XLM) $ 0.138579
hedera-hashgraph
Hedera (HBAR) $ 0.114789
the-graph
The Graph (GRT) $ 0.407298
okb
OKB (OKB) $ 63.97
mantle
Mantle (MNT) $ 1.18
dogwifcoin
dogwifhat (WIF) $ 3.78
optimism
Optimism (OP) $ 3.70
maker
Maker (MKR) $ 3,852.90
bittensor
Bittensor (TAO) $ 522.34
injective-protocol
Injective (INJ) $ 38.21
fetch-ai
Fetch.ai (FET) $ 3.23
pepe
Pepe (PEPE) $ 0.000008
vechain
VeChain (VET) $ 0.045625
kaspa
Kaspa (KAS) $ 0.138328
thorchain
THORChain (RUNE) $ 9.19
theta-token
Theta Network (THETA) $ 2.96
fantom
Fantom (FTM) $ 1.01
arweave
Arweave (AR) $ 42.48
sui
Sui (SUI) $ 2.10
first-digital-usd
First Digital USD (FDUSD) $ 1.00
lido-dao
Lido DAO (LDO) $ 2.85
celestia
Celestia (TIA) $ 14.56
monero
Monero (XMR) $ 136.65
gala
GALA (GALA) $ 0.065996
floki
FLOKI (FLOKI) $ 0.00025
sei-network
Sei (SEI) $ 0.867195
algorand
Algorand (ALGO) $ 0.271849
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,921.51
flow
Flow (FLOW) $ 1.37
quant-network
Quant (QNT) $ 137.02
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,635.65
aave
Aave (AAVE) $ 128.60
beam-2
Beam (BEAM) $ 0.035854
bonk
Bonk (BONK) $ 0.000029
bitcoin-sv
Bitcoin SV (BSV) $ 94.47
conflux-token
Conflux (CFX) $ 0.475045
jupiter-exchange-solana
Jupiter (JUP) $ 1.30
wrapped-eeth
Wrapped eETH (WEETH) $ 3,687.12
singularitynet
SingularityNET (AGIX) $ 1.36
havven
Synthetix Network (SNX) $ 5.05
dydx-chain
dYdX (DYDX) $ 3.53
starknet
Starknet (STRK) $ 2.24
ribbon-finance
Ribbon Finance (RBN) $ 1.70
elrond-erd-2
MultiversX (EGLD) $ 60.61
bittorrent
BitTorrent (BTT) $ 0.000002
axie-infinity
Axie Infinity (AXS) $ 11.01
the-sandbox
The Sandbox (SAND) $ 0.692993
ordinals
ORDI (ORDI) $ 67.71
ether-fi-staked-eth
ether.fi Staked ETH (EETH) $ 3,557.42
bitget-token
Bitget Token (BGB) $ 1.00
ethena-usde
Ethena USDe (USDE) $ 1.00
worldcoin-wld
Worldcoin (WLD) $ 8.57
tezos
Tezos (XTZ) $ 1.43
ecash
eCash (XEC) $ 0.00007
pyth-network
Pyth Network (PYTH) $ 0.909305
mina-protocol
Mina Protocol (MINA) $ 1.25
ondo-finance
Ondo (ONDO) $ 0.903173
flare-networks
Flare (FLR) $ 0.035136
gatechain-token
Gate (GT) $ 9.69
eos
EOS (EOS) $ 1.12
apecoin
ApeCoin (APE) $ 2.03
chiliz
Chiliz (CHZ) $ 0.143816
decentraland
Decentraland (MANA) $ 0.669104
ronin
Ronin (RON) $ 4.08
whitebit
WhiteBIT Coin (WBT) $ 8.38
axelar
Axelar (AXL) $ 2.00