Several cryptocurrencies have climbed the trading chart this week as another bullish flag correction formed. The ATOM token on the Cosmos blockchain is one of the best performers in the past 24 hours. Knowing that bull runs can be cut off at any time, this article examines the Cosmos project and examines whether the time is right to buy and keep ATOM.
Kosmos: Internet of Blockchains
The Cosmos network is affectionately known as the “Internet of Blockchains” and aims to connect crypto networks through open source tools. Cosmos’ priority is to achieve interoperability between projects in the crypto industry. In this way, they can easily exchange data and tokens without a central party facilitating the activity.
The Cosmos network consists of many independent, parallel blockchains, the so-called zones. Each zone is operated by Tendermint, the classic Byzantine fault tolerant (BFT) consensus protocol.
The basis of the Cosmos blockchain, also called 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 connect to ATOM to earn block rewards.
Cosmos was launched in 2019 after its Initial Coin Offering (ICO). The founders include Jae Kwon, Zarko Milosevic and Ethan Buchman, who are also co-founders of Tendermint.
ATOM ready to go higher
The ATOM token started the year trading at just $ 5.868 before hitting an all-time high of $ 32.14 in May of this year. However, the crypto crash caused the asset to decline to $ 11.74 by the end of May.
ATOM continued to fall, trading for $ 8.97 on June 22, 2021. However, this changed towards the end of July. The virtual asset hit $ 12.61 on July 31, and that positive momentum carried over into August. At number 41 by market capitalization, ATOM is currently trading at $ 24.93, an increase of 23.9% over the past 24 hours. The token is still cheap and the recent price jump is a good signal for interested investors to buy ATOM.
ATOM technical and fundamental analysis
Cosmos price looks healthy on the trading chart. The governance token trades above the 20-day and 200-day moving average (MA) at $ 18.99 and $ 17.45, respectively.
The Relative Strength Index (RSI) is currently trading in the overbought area of 72.15, suggesting that many investors are in the market to buy ATOM.
This is confirmed by the crypto prediction website Wallet Investor, which believes ATOM would climb to $ 32.490 in a year and start trading. According to the forecast page, ATOM is expected to trade at $ 81.339 in five years.
This month, the Cosmos project gained increasing acceptance as several decentralized financial protocols (DeFi) were introduced 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 and strengthens Cosmos’ vision of merging several interconnected blockchains.
The very first protocol introduced on the Gravity DEX, called Emeris, launched this month and allows users to experience the DEX. The introduction of Emeris introduced cross-chain exchanges for members of the Cosmos community and resulted in a surge in demand for the ATOM token.
The new interface allows users to access many cross-chain DeFi protocols in the Cosmos network, opening up opportunities.
Another important development that recently emerged on the Cosmos blockchain is the integration of Omnichain DEX Sifchain with Inter-Blockchain Communication (IBC).
This integration would help connect and enable trade between the Cosmos ecosystem and the Ethereum network.
As part of Cosmos’ vision to create interoperability between disparate networks, the platform partnered with Interlay. The partnership would make it possible to bring bitcoin to all DeFi chains, allowing users anywhere to invest, earn and pay with their bitcoins.
About Jimmy Aki PRO INVESTOR
Jimmy is a UK-based economist with outstanding hands-on and face-to-face experience in macroeconomic financial analysis, forecasting and planning. He has refined his skills through a cross-continental activity as a financial analyst, which gives him intercultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him to peek under the global hood to see how the world works.