Cosmos Price Up 5.83% – Time to Buy ATOM Coin?

• With the price of Cosmos currently outperforming most of the major altcoins in the past 24 hours, it sure looks like a good time to buy ATOM
• The Cosmos ecosystem is excited at the prospect of EVM compatibility
• Cosmos users are also eagerly anticipating the ecosystem’s Theta upgrade

More investors appear to have rushed to buy ATOM yesterday. The asset, which functions as the native token for the Cosmos blockchain network, saw gains of 5.83% in the past 24 hours, bucking a deeper correction from the broader market.

While there was optimism that the market would consolidate yesterday, the bears stayed in control as they pushed Bitcoin’s price below the $40,000 mark for a few hours. Although Bitcoin rebounded and is over 41,00 again, all indicators point to a further correction in the short term. So, should you buy ATOM as a safe haven? Let’s find out.

As stated earlier, ATOM is the native token for the Cosmos ecosystem. Cosmos is a tool that is designed to facilitate communication, scaling, and collaboration between projects built on different blockchains. Dubbed the “Internet of Blockchains,” Cosmos looks to bring different chains together within a single platform.

Different tools have tried to solve the famed “blockchaint dilemma” in their way. Cosmos is looking to apply the principle of collaboration to solve this problem, ensuring that all chains in its ecosystem can effectively scale, collaborate, and increase their functionality.

ATOM, the network’s token, can be bought, traded, and staked. The asset currently trades at $38.78, which is a 5.38% increase in the past 24 hours

EVM Compatibility Excites Cosmos Users, ATOM Investors

While the broader market entered 2022 dealing with bears, ATOM has been relatively soaring. It hit $44.69 on January 7, coming ever so close to its all-time high of $44.81 – which was set in September 2021.

The push was primarily due to the rollout of Evmos – a protocol compatible with the Ethereum Virtual Machine (EVM). Evmos will allow projects and assets running on the Ethereum blockchain to migrate to the Cosmos network.

Up until now, Ethereum projects have had no way to interact with the Cosmos network. This means that Cosmos projects have largely been left out of fledgling sub-industries like non-fungible tokens (NFTs) and decentralised finance (DeFi). With Evmos, all of this changes.

Good News on Upcoming Theta Upgrade

Another bullish sign that might cause investors to buy ATOM is the upcoming Theta upgrade to Cosmos.

Expected on March 31, Theta will bring several new features to the Cosmos ecosystem. These include liquid staking, which will allow ATOM stakers to still use their staked assets in other areas of the ecosystem.

Then, there are meta-transactions, which allow users to submit transactions in separate accounts to get chips. Inter-chain accounts will also allow users to manage accounts across multiple chains and much more.

ATOM Technical Analysis: ATOM Bucking the Broader Market’s Bearish Trend

A glance at the ATOM chart will tell that the asset is on a roll. After ranging between $20 and $25 for most of December 2021, the asset broke out of its range to the bullish side on December 22 and began a bullish trend.

The asset’s bullish structure was broken on December 29, but that only served as consolidation for its push near its all-time high.

ATOM’s 100 hourly simple moving average (SMA) stands at $37.78, which should serve as a good enough support for it as Tuesday’s trading day begins. The 23.6% Fibonacci retracement tool puts ATOM at $35.69, with the 50% metric serving as likely support at $38.50.

With a positive moving average convergence divergence (MACD), ATOM is showing a strong buy signal. The asset’s relative strength index (RSI) of 59.16 is still not overbought, so this might be a good time to buy ATOM.

With the broader market still shaky after yesterday’s scare, ATOM looks like a good bet right now.

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