Has Cosmos ATOM/USD finally found a bullish footing?
Cosmos ATOM/USD has climbed 2% in the past day to consolidate weekly gains at 17% as cryptocurrencies recover. ATOM currently trades at $13, with a market valuation of over $3 billion. Equally, Cosmos has registered significant activities as daily trading volumes rose 63% to $628 million.
A broader outlook shows that the interoperability token is 59% lower year-to-date. While it is a significant sell-off, it is lower compared to the drop in the overall crypto valuation. The overall market cap is at $990 billion from a peak of $3 trillion.
Cosmos aims for blockchain scalability and connectivity through a unified network called the ‘Internet of Blockchains.’ The platform’s use case in enabling independent blockchain share data is seeing a rising interest among blockchains. This month alone, Cosmos added 17 new projects, with the weekly active users rising to more than 85,000 as of October 17.
Supporting the fast expansion of Cosmos is the ability to create a blockchain from scratch, with Cosmos IBC. The interoperability protocol is based on a proof of stake consensus and Byzantine Fault-Tolerant. Technically, ATOM is on bullish momentum, but the indicators show some weakness.
Cosmos surges from support as momentum wanes
Source – TradingView
ATOM moved from $11 to $13 within seven days, pushing it to the upper band of the Bollinger Bands. The trend means the digital asset may be due for a pullback. The view is complemented by the Stochastic Oscillator, which currently shows ATOM at the overbought zone. If the two technical indicators hold, the token could retest the $11 support level.
Concluding thoughts
Although ATOM has turned in positive gains, the token may be due for a correction and is not yet a buy. The technical indicators are pointing towards a potential pullback, at least in the short term.
For the long-term outlook, Cosmos fundamentals in interoperability place the network in a strategic position. However, the overall crypto market sentiment is a factor to consider.
Where to buy ATOM
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Coinbase
Coinbase is a global cryptocurrency exchange. Its platform is well designed for beginner investors and it offers a wide range of coins, as it has over 100 to choose from.
Coinbase has high level security built into the platform, a range of diverse features to use and it offers its users options for storing their crypto, such as being able to store coins on the Coinbase exchange.
