Atom breaks out of a bearish channel and news supports a positive price action.
Cosmos making higher lows is a pointer to rising bullish momentum.
Major milestone hit on a critical Cosmos and Polkadot Bridge
Cosmos price action is also supported by the FXM listing.
Cosmos ATOM/USD is not as well-known as the other large-cap cryptocurrencies. That said, it has been surging in value and is currently one of the few cryptos in the green, in a sea of red. So what exactly is Cosmos?
Cosmos is a cryptocurrency that aims to interconnect Dapps across blockchains. The idea is to create an interconnected chain of Dapps and lay the foundation for Web 3.0.
Over the past year, the Cosmos ecosystem has grown quite strongly and added a lot of value to the Cosmos (ATOM) token. That’s despite the fact that ATOM is an inflationary token.
The Cosmos ecosystem continues to grow
Cosmos is currently surging, and in the past week alone, is up by over 30%. This follows news that a bridge between Cosmos and Polkadot had hit a major milestone. News of this bridge has pushed up investor interest in ATOM because it will likely trigger an upsurge in the number of projects building on Cosmos.
Besides an update on the Cosmos/Polkadot Bridge called Astra/Shiden, Cosmos is also getting listed on more major exchanges. The latest big exchange to list Cosmos is FTX. This is a big deal because it means more liquidity and demand, especially now that the price is rising and new investors would want a piece of the pie.
ATOM breaks out bearish channel
Since February 24, 2022, ATOM has been on an uptrend, even as the broader market slowed down. However, in the last 24-hours, ATOM has eased up.
All through Saturday and early Sunday, ATOM was trading in a bearish channel. It has since eased. However, in the last 4-hours, bulls have pushed ATOM through the upper resistance channel at $28.97. If volumes increase and a bullish reversal follows, ATOM could test prices above $35 in the next 24-hours.
However, if bears take control and the 24-hour support of $28.64 is lost, prices below $25 could be tested in the next 24-hours or so.
Cosmos (ATOM) is one of the few cryptocurrencies that are on an uptrend at the moment. This is driven by news of a major Cosmos/Polkadot bridge and the listing of ATOM on FTX. Trading volumes are rising, and price action indicates that ATOM could rally even further going into the new week.