Cosmos Price Up By 23.9% – Time To Buy Cosmos Coin?
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This week has seen several cryptocurrencies climb up on the trading chart as another bullish flag correction is formed. The ATOM token of the Cosmos blockchain is one of the best performers in the last 24 hours. Knowing bull runs can be snipped at any point, this article examines the Cosmos project and examines whether the time is right to buy ATOM and hold.
Cosmos: Internet Of Blockchains
Fondly called the “Internet of blockchains,” the Cosmos network aims to connect crypto networks through open-source tools. Cosmos’ priority is to achieve interoperability between projects in the crypto industry. This enables them to share data and tokens easily, with no central party facilitating the activity.
The Cosmos network consists of many independent, parallel blockchains, called zones. Each zone is powered by Tendermint, the classical Byzantine fault-tolerant (BFT) consensus protocol.
The foundation of the Cosmos blockchain, also called the distributed ledger, is the Cosmos Hub. The ATOM token is the utility token of the Cosmos blockchain. The crypto can be used to pay fees, 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 initial coin offering (ICO). Founders include Jae Kwon, Zarko Milosevic, and Ethan Buchman, who are also the co-founders of Tendermint.
ATOM Ready To Go Higher
The ATOM token started the year trading at just $5.868 before reaching an all-time high price of $32.14 in May this year. However, the crypto crash caused the asset to decline to $11.74 by the end of May.
ATOM continued to drop and traded for $8.97 on June 22, 2021. But this changed towards the end of July. The virtual asset reached a price of $12.61 on July 31, and this positive momentum has spilled over into August. Ranked 41st by market cap, ATOM is currently trading at $24.93, marking a 23.9% increase in the last 24 hours. The token is still cheap and the recent jump in price is a good signal for interested investors to buy ATOM.
ATOM Technical and Fundamental Analysis
Cosmos’ price is looking healthy on the trading chart. The governance token is trading above the 20-day and 200-day moving average (MA) support price at $18.99 and $17.45, respectively.
The relative strength index (RSI) currently trades at the overbought region of 72.15, which indicates that many investors are in the market to buy ATOM.
This is confirmed by the crypto forecast website Wallet Investor, which believes that ATOM would go up and trade at $32.490 in one year. According to the prediction site, ATOM is expected to trade at $81.339 in five years.
This month has seen the growing adoption of the Cosmos Project as several decentralized finance (DeFi) protocols have launched on the network.
The positive momentum for the Cosmos project is attributed to the recent unveiling of the Gravity DEX (decentralized exchange) upgrade last month. The Gravity DEX is an online marketplace for trading tokens from any connected blockchain, reinforcing Cosmos’ vision of bringing together multiple interconnected blockchains.
The first-ever protocol to be introduced on the Gravity DEX called Emeris launched this month, enabling users to start experiencing the DEX. The launch of Emeris introduced cross-chain exchange capabilities to the members of the Cosmos community and led to a spike in demand for the ATOM token.
Users can access many cross-chain DeFi protocols on the Cosmos network through the new interface, thereby opening up opportunities.
Another important development that occurred recently on the Cosmos blockchain is the integration of Omni- chain DEX Sifchain with the Inter-blockchain communication (IBC).
This integration would help connect and enable trades between the Cosmos ecosystem and the Ethereum network.
As part of Cosmos’s vision to bring interoperability among different networks, the platform partnered with Interlay. The partnership would make it possible to bring Bitcoin to all DeFi chains, thereby making it possible for users to invest, earn and pay using their Bitcoin anywhere.
