Cosmos Price Down By 3.97% – Time to Buy ATOM Coin?
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The crypto market has been in a whirlwind in the last few days as regulatory storms have impacted the nascent industry negatively. Crypto bellwether Bitcoin has shed some of its value with altcoins like ATOM dipping.
However, the Cosmos blockchain is one of a number of promising protocols as decentralized finance (DeFi) sees growing adoption. This article considers the Cosmos blockchain and explores if this could be a great time to buy ATOM for a bargain.
Cosmos: Internet for Blockchain 3.0
Similar to the Ethereum blockchain, the Cosmos protocol enables the development of decentralized applications (dApps). However, it differs from Ethereum in a number of ways. Cosmos bills itself as the most customizable, scalable, powerful, and interoperable ecosystem of connected blockchains.
The Cosmos network is powered by Tendermint and Byzantine Fault Tolerant algorithms and allows DeFi protocols to thrive in a low-cost, energy-efficient, and superfast platform.
Each dApp, called zones, connect to the Cosmos Hub which is also known as the ‘Internet of Blockchain.’ Here, digital assets and tokens are transferred between hosted protocols easily and seamlessly. Cosmos also sports a software development kit (SDK) which breaks the complexity concerning blockchain functionalities like governance, token and staking down. This allows development teams to concentrate on building while Cosmos handles the core functionalities.
The Cosmos blockchain is powered by ATOM which is used for governance, bonding, and staking.
ATOM Price Consolidating In The Crypto Sell-offs
The crypto market has been hit by a bevvy of bad news in the last couple of weeks. The latest being China’s outright ban of all cryptocurrencies. The nascent industry shrunk 4% as the reports hit mainstream media channels, dipping from a September high of $2 trillion to $1.93 trillion.
ATOM has also felt the brunt of the China effect and has idled in the $39 for much of this month only breaking above the $40 mark momentarily on Sept. 20.
Dipping on 6% two days later, ATOM slid to $30 before bouncing off the support price and making another go at $43.52. Despite apparent market volatility, ATOM is still in the green compared to the three-month crypto market crash.
At press time, ATOM is down 3.97% and trades at $35.67. Weekly gains stand at 11.167%, reflecting a bull run on the horizon. However, a dip could be a great opportunity to buy ATOM before it makes a significant rally.
ATOM Technical and Fundamental Analysis
ATOM is showing strong technical strength and trades slightly above the 20-day moving average (MA) price of $36.24. This is a dicey situation given that it could dip at any point. However, a strong bullish showing could see ATOM rally above this price mark. The relative strength index (RSI) figure of 51.50 shows that investors are keen to buy ATOM. The Cosmos blockchain is making strategic moves to increase its network throughput. In a recent partnership deal, the interoperable blockchain penned an R&D deal with Mysten Labs and Sommelier to increase Move smart contracts transaction speeds on the platform.
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