A sea of red poured into the cryptocurrency market on Monday, and exceptions are rare. However, it is still possible to find cryptocurrencies that continue to advance against all odds. The most important crypto that manages to keep gains over 24 hours is indeed the Cosmos (ATOM), which has gained 5% since yesterday and more than 25% over a week.
It thus marked a new all-time high on Monday morning, at $ 44.8. It does not seem that this new wave of rising Cosmos directly responds to news. However, as we will see in this article, there are many good reasons why the Cosmos course is progressing, and should continue to progress. To begin with, let us recall the operation and principle of ATOM.
What is the Cosmos (ATOM)?
As cryptocurrencies gain in popularity, it should be remembered that the industry still has many challenges ahead. For example, with regard to scalability and sustainability, or even interoperability, which refers to the ability of blockchain networks to exchange information.
Currently, most blockchains operate in isolation. However, they must work together for the industry to reach its full potential and for cryptocurrencies to become more and more convenient to use.
It is on this point in particular that Cosmos (ATOM) intervenes, proposing a solution to this problem with its technology nicknamed “the internet of blockchains”.
Thus, the ultimate goal of Cosmos is that all blockchains can communicate with each other. In this context, the ATOM governance token is involved in the process of securing the network.
Why has the course of the Cosmos exploded lately?
While the fact that the Cosmos is advancing as nearly all other cryptocurrencies retreat on Monday is already impressive in itself, its performance in recent weeks is even more impressive. Indeed, the Cosmos was worth less than $ 10 at the start of its current uptrend on July 20. At the peak of this Monday, its value had therefore quadrupled in exactly 2 months. In the last 10 days alone, the Cosmos has doubled in value.
Recall that this impressive rally was fueled in particular by the recent launch of the first functional user interface for DeFi on Cosmos, known as Emeris, because the introduction of cross-channel exchange capabilities interested members of the Cosmos community and resulted in increased demand for the token.
The second reason for ATOM’s rally is the integration of Sifchain with IBC, which made the project the first decentralized exchange to provide exchanges between the Cosmos ecosystem and the Ethereum network.
Cosmos (ATOM) technical trend remains strongly bullish
Since the new all-time high early this morning, Cosmos cryptocurrency has corrected, and is reluctant to maintain the $ 40 threshold at the time of writing. However, its hourly profile remains very clearly bullish, as can be seen on the daily chart below.
We can indeed estimate that the Cosmos could retreat to around $ 30 without questioning its underlying graphical trend in hourly data. When it comes to bullish targets, the psychological threshold of $ 50 will be the first obvious target when the Cosmos ends its short-term hiatus and resumes rising.