Cosmos is at the forefront of advancing interoperability and scaling to create the truly decentralized blockchain web, or Web 3.0. There are many blockchains out there that have been created with different intentions. However, in order to exchange or carry out transactions between two other cryptocurrencies, we have to convert them into a standardized token or use crypto exchanges. But with Cosmos (ATOM) you can easily send Bitcoin to Ethereum or Litecoin to TRON and henceforth.
Since 2014, the developers at ATOM have understood the challenges and shortcomings of the existing blockchain networks. The key to this interoperability is powered by IBC or inter-blockchain communication. Blockchains that accept IBC will facilitate easy asset transfers and allow others to take full advantage of both cryptocurrencies.
Not only limited to transactions, Cosmos has also started helping DeFi with its blockchain network. On July 13, 2021, the Cosmos blockchain introduced the Gravity DEX exchange protocol backed by over $ 3 billion in digital assets.
Gravity DEX is, and why should you know about it?
Gravity DEX is one of the most secure cross-chain exchange protocols that allows you to access cryptocurrencies and blockchains at the seed level in development even before they are listed on centralized exchanges. This exchange protocol gives you access to swaps and pools of digital assets between all blockchains connected to the cosmos. Of course, the blockchains aren’t on that Cosmos network will not be accessible via this protocol.
The early-stage access to blockchain networks offering will be an excellent opportunity for crypto enthusiasts looking for new opportunities. Additionally, the Gravity DEX will level the playing field for smaller traders to access the DeFI network with a minimal swap fee of $ 0.01-0.10. It currently uses what is known as the Equivalent Swap Price Model to improve price consistency and reduce arbitrage, which enables transparent trading without manipulating the order book. Traders on Gravity Dex can even create their order book for access to instant pricing information.
It’s not over yet. The ongoing development of the gravity bridge to Ethereum and other chains compatible with Ethereum Virtual Machine will ensure higher liquidity for the Cosmos hub. Once the online gravity bridge offers a faster and cheaper ERC20, it would lower Ethereum gas fees and open up huge opportunities for traders.
Kosmos price analysis
Cosmos (ATOM) price is currently trading between resistance and support levels, but the rise of the 200 exponential moving average lines becomes resistance for it. In addition, Cosmos has been pushed down for the fifth time in a row in the past two months; In light of such price action, when prices have been lower for the past two months, the setback of 200 EMA is a worrying sign that the EMA is also falling.
Negativity in the ATOM price action is viewed as a profit posting scenario that occurs on every rise. Unfortunately, investor sentiment across the cryptocurrency market is not that positive. A decline since the last five days hitting new lows in the current swing suggests a decline towards the $ 8 support. A pullback is expected from these levels, but for now ATOM has also entered a negative bearish zone on broader time frames if it fails to reach support from the current USD 11 support levels.
MACD indicates a bearish engulfing pattern and the beginning of a negative swing. The last negative swing pushed ATOM down 30% so traders should be careful about taking large positions at current levels. Let the candle pattern create some clarity. Buying at the USD 8 level would push ATOM a little higher, but it has to close above the 200 EMA to be in trend. The Heikin Ashi charts suggest that a solid sales setup is in place.
If ATOM doesn’t produce a negative candle the next day, there could be a decent retracement, but wait for a clear candle to show up on the daily charts.
Cosmos price was pushed to a new low of the current swing today at $ 10.8549 on the intraday hourly charts. This low has created considerable selling pressure at ATOM. Ideally, subsequent red candles indicate that a negative pressure is active. The proximity of the RSI near the oversold zones on the hourly charts with increased trading volumes in the past few hours shows that a huge trade is taking place.
While increased volume is a good sign of more participation, the falling RSI and its inability to reach overbought zones point to an imminent selloff Kosmos price prediction.
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