Cosmos (ATOM) Rallies as Crypto Market Sentiment Improves
Aiswarya Gopan • 2 min read
Cosmos (ATOM) is one of the biggest gainers in the overall cryptocurrency market today, strengthening by nearly 24% as investors cheered the news of China’s Evergrande committing to pay off its debt, and enjoying the support of interesting fundamental developments. At the time of writing, ATOM/USD is trading around $39.82.
One of the key factors driving up the price of ATOM is the increased trading activity among investors. Analysis by Messari reveals a steady uptick in Cosmos’s trading volume over the past one month and a corresponding increase in its price, barring the slight dip earlier this week when the overall mood in the crypto market had turned bearish.
Analysts Bullish About Cosmos in the Near Term
Leading crypto analysis show Coin Bureau’s host who goes under the pseudonym ‘Guy’ stated that the Cosmos price is currently severely undervalued considering its potential. In a recent YouTube video, he discusses the IBC protocol and its benefits in offering interoperability capabilities as being one of the main drivers that can help developers build blockchains and projects that can perform cross-chain transactions. Cosmos’s ultimate vision to develop an Internet of Blockchains promises several use cases, higher transaction speeds and scalability, making it one of the most important projects in the cryptocurrency market till date.
Another leading crypto analyst and influencer, Michaël van de Poppe has also listed Cosmos as one of the top altcoins to buy. He states that the blockchain’s ecosystem that offers connectivity between other Layer-1 blockchains could make it the next Solana. If his prediction comes true, we could see an uptick in institutional interest in this cryptocurrency soon, which could further power its uptrend.
Speaking of institutional interest in cryptocurrencies, we could soon see some activity on this front in Cosmos (ATOM) after US-based blockchain infrastructure company Blockdaemon secured $155 million in funding. The startup offers institutional investors blockchain infrastructure services such as staking and node operations and offers support for more than 40 blockchain networks, including Cosmos. The firm has confirmed that the latest round of investment will help it speed up its efforts to ease integration and bridge the gap between traditional finance (CeFi) and the cryptocurrency ecosystem.
Key Levels to Watch
On the H4 chart of ATOM/USD, moving averages and leading technical indicators MACD and momentum are exhibiting a strong bullish bias among investors. However, the Stochastics RSI suggests some sellers present in the market as well.
Cosmos’s price is sitting just above the pivot point at $39.76 and further bullish pressure can take it past the $40 level until buyers encounter resistance at $49.23. A break above this takes ATOM into the $50 mark till the second resistance at $54.15.