Cosmos Price Up 6.46% – Time to Buy ATOM Coin?

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Following a significant rally, ATOM is now seeing interest from several investors. The digital asset has shot up by 6.46% in the last 24 hours with its weekly gains standing at 36.34%. However, making an investment decision should not rely on only price movements. Given the importance of market sentiments, we will be breaking down the fundamentals of the Cosmos blockchain and whether you should buy ATOM right now.

Cosmos: The Internet of Blockchains

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Dubbed the “internet of blockchains,” Cosmos is a network of parallel, independent blockchains that are scalable and highly secure. The platform’s primary objective is to improve interoperability between all blockchains in its network. This way, users would be able to trade digital assets that are native to one blockchain on another.

On Cosmos, each independent blockchain is known as a “zone.” All zones are connected to the Cosmos Hub, which maintains a record of each zone’s state and vice versa. The Cosmos Hub itself is a proof-of-stake blockchain, and it is powered by the ATOM coin.

The ATOM token plays a significant role in keeping the interoperability between all zones. It can be spent, held, and staked. This means that the ATOM price will rise as more blockchains are built within the Cosmos network. People who own and stake the coin can vote on network upgrades and take governance into their own hands.

ATOM: Making Steady Headway

ATOM has come a long way already it is ranked #28 on CoinMarketCap’s list of most valuable cryptocurrencies. With a market capitalization of over $7.7 billion, ATOM is up 6.46% in the past 24 hours. The asset’s trading volume in the past 24 hours stands at $1.954 billion, up 63.60%.

The market has been especially focused on ATOM recently, with the coin posting impressive gains to even set a new all-time high. After hitting $32.32 on May 7, the ATOM price dropped significantly as a result of the crypto market slump. The coin bottomed out at $7.89 on June 22 – a drop of 75.5%.

But, gains have started coming in once more. ATOM has been on an upward trajectory for the past few weeks, gaining a whopping 159.5% from the start of August. With a value of $34.6755, the ATOM price is up 6.46% in the past 24 hours. The seven-day increase stands at 36.34% following a lacklustre performance in the wider crypto market.

ATOM Technical And Fundamental Analysis

ATOM’s technicals are looking pretty strong. The coin’s relative strength index (RSI) is currently at 68.27, which shows investors want to buy ATOM.
Day traders will appreciate that the coin remains above its 20-day Simple Moving Average (SMA) of $26.998. This shows a potential for a medium-term uptrend.

The same result is shown when you plot for the 50-day exponential moving average (EMA), which currently shows $22.15. Both points will act as support levels for the price, and it should have enough momentum to make upward swings if the bulls continue to hold the market.

The ATOM price is still expected to rally in the coming weeks and this might serve as an ideal opportunity to buy ATOM. According to the popular crypto forecast website Wallet Investor, ATOM will end the year at $45.462 and trade at $97.587 in the next five years.

On its fundamentals, the Cosmos blockchain is ramping up efforts to bolster its DeFi services. The crypto protocol recently launched a functioning user interface for DeFi called Emeris. This new interface will enable users to access a number of cross-chain DeFi protocols on the Cosmos network and trade assets easily.

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About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.