The ATOM token by the Cosmos community has been one of the crucial spectacular cash over the previous 24 hours. Can this rally be sustained? Is it a very good time to purchase ATOM? Let’s dive proper in.
Cosmos: Blockchain 3.0
Cosmos is a decentralized community that permits knowledge exchanges between totally different blockchains. The venture goals to resolve scalability and interoperability issues within the blockchain trade whereas providing an ecosystem of related blockchains.
Cosmos’ origins will be dated again to 2014, when Tendermint, generally known as the gateway to the community, was based. Cosmos printed its white paper in 2016 and a yr later it held a token sale/ preliminary coin providing (ICO).
Cosmos has three core elements that work collectively, this consists of Tendermint Core, the Cosmos Software program Improvement Package (SDK), and the applying blockchain interface.
The venture additionally has a distributed ledger which it calls the inspiration of the blockchain known as Cosmos Hub.
Cosmos was launched formally in 2019 after its ICO. The founders embody Jae Kwon, Zarko Milosevic, and Ethan Buchman who’re additionally the co-founders of Tendermint.
The protocol makes use of each Tendermint’s Byzantine fault-tolerant consensus protocol and the Inter-Blockchain Communication (IBC) protocol.
The ATOM token acts because the governance asset of the protocol. The tokens are earned by way of a hybrid proof-of-stake algorithm, and so they assist to maintain the Cosmos Hub safe.
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ATOM Catching Some Tailwind
Like all cryptocurrencies, the ATOM token worth jumped sharply early this yr as demand for the coin rose.
It reached the $7 mark in January this yr from the $5 it was buying and selling at in December 2020.
The surge continued until it reached an all-time excessive of $32.14 in Could this yr. Nevertheless, previously few months, the worth has plunged alongside many different property.
Ranked forty first by market cap on CoinMarketCap, ATOM is at present buying and selling at $12.70 marking a 3.84% enhance within the final 24 hours.
ATOM Technicals And Fundamentals Evaluation
ATOM’s technical indicators hinted at short-term bullish momentum over the following few days. The digital asset’s relative energy index (RSI) is at a wholesome 57.34 on the day by day chart.
The wolfpack ID technique emphasised this short-term uptrend by exhibiting the inexperienced line on the identical path as zero.
ATOM’s 20-day transferring common (MA) is parallel with the indicator at $12.70 whereas its 200-day MA is at $12.96 signaling a bullish development.
The Shifting Common Convergence Divergence (MACD) can be bullish as it’s trailing upwards above zero. These indicators present buyers that it’s a good time to purchase ATOM.
By way of fundamentals, Cosmos Hub passed over 100,000 ATOM delegators and 330,000 $ATOM accounts.
As well as, Akash Community, an open-source cloud also called Airbnb for cloud computing, announced the mixing of Akash Token (AKT) and Cosmos ATOM tokens on Osmosis final month.
Osmosis is an automatic market maker (AMM) protocol constructed for liquidity suppliers, permitting customers to earn rewards for offering liquidity. Customers can now commerce ATOM tokens on the community.
Cosmos has additionally been rolling out upgrades on its platform. The newest improve dubbed Stargate was launched to the Cosmos group earlier this yr.
Stargate represents an necessary milestone for the Cosmos venture on the best way to launching its IBC protocol.
With this improve, over 200 Tendermint-based blockchains would be capable to interoperate seamlessly.
Cosmos can be set to unveil one other improve this yr known as the Gravity DEX, (decentralized alternate).
The Gravity DEX will act as an internet market for buying and selling tokens from any related blockchain, together with tokens from IBC-enabled blockchains, wrapped ETH to wrapped BTC tokens, and from any future networks that implement IBC.