{"id":487792,"date":"2022-08-26T00:51:41","date_gmt":"2022-08-25T21:51:41","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/atom-price-is-reaching-for-the-cosmos-but-why\/"},"modified":"2022-08-26T00:51:41","modified_gmt":"2022-08-25T21:51:41","slug":"atom-price-is-reaching-for-the-cosmos-but-why","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/atom-price-is-reaching-for-the-cosmos-but-why\/","title":{"rendered":"# ATOM price is reaching for the Cosmos, but why?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a30499fc72ad\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a30499fc72ad\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/atom-price-is-reaching-for-the-cosmos-but-why\/#%E2%80%9D_ATOM_price_is_reaching_for_the_Cosmos_but_why_%E2%80%9C\" >&#8221; ATOM price is reaching for the Cosmos, but why? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/atom-price-is-reaching-for-the-cosmos-but-why\/#So_its_only_up_sir\" >So, it\u2019s only up, sir?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/atom-price-is-reaching-for-the-cosmos-but-why\/#Product_to_market_fit_and_a_secure_cross-chain_bridge_could_thrive_post_Merge\" >Product to market fit and a secure cross-chain bridge could thrive post Merge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/atom-price-is-reaching-for-the-cosmos-but-why\/#Whats_happening_on_the_development_side_and_roadmap\" >What\u2019s happening on the development side and roadmap?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_ATOM_price_is_reaching_for_the_Cosmos_but_why_%E2%80%9C\"><\/span>&#8221; ATOM price is reaching for the Cosmos, but why? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>As a market crash takes place, assets become oversold and typically there\u2019s an \u201coversold bounce,\u201d \u201creturn to mean,\u201d \u201cmean reversion,\u201d or some price snapback to the bottom of the pre-crash range.\u00a0<\/p>\n<p>Afterward, the asset under study either consolidates, continues the downtrend, or returns to the bullish uptrend if the downside catalyst was not significant enough to break the market structure. That\u2019s all kind of basic trading 101.<\/p>\n<p>This week Cosmos (ATOM) price <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be following this path and the altcoin is showing a bit of strength with a 35% gain since Aug. 22, but why? <\/p>\n<p>Depending on how you look at it, and technical analysis is by all means a subjective process, ATOM price is either in an ascending channel or one could say a rounding bottom pattern is present with price close to breaking above the neckline. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/5aaccc72-66cb-42e9-aa98-f380f1b62394.png\"><figcaption style=\"text-align: center;\"><em>ATOM daily chart. Source: Tradingview<\/em><\/figcaption><\/figure>\n<p>Resistance above $13 (the horizontal black line in the bottom chart) is currently close to being tested and with sufficient volume and \u201cstability\u201d from the wider crypto-market, the price could be en-route to the 200-day moving average at $17.20. <\/p>\n<p>Of course, if Bitcoin goes belly up at the daily close, or hawkish talk starts to leak out of Jackson Hole, the whole bullish structure for ATOM is likely kaput. So if one is trading, prepare and size accordingly. <\/p>\n<p>If price manages to reach the $17 zone, without skipping a beat, your favorite technical analysts will then say something along the lines of: <\/p>\n<p>\u201cIf ATOM price manages to flip the 200-MA to support, continuation to the $27 level could occur.\u201d <\/p>\n<p>Surely you\u2019ve seen that on crypto <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> lately, but let me find an example. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I bought this <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ATOM&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ATOM<\/a> retest as it&#8217;s been leading the market<\/p>\n<p>Looking for a move towards $14.4 as long as the lows hold here. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/FjP8mzdFHK\">pic.twitter.com\/FjP8mzdFHK<\/a><\/p>\n<p>\u2014 CryptoGodJohn (@CryptoGodJohn) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoGodJohn\/status\/1562892254221443072?ref_src=twsrc%5Etfw\">August 25, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"So_its_only_up_sir\"><\/span>So, it\u2019s only up, sir? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>What traders need to find out is whether ATOM\u2019s upside momentum is simply the result of a \u201cstable\u201d market and Bitcoin and Ether trading in a relatively predictable range, or is there some Cosmos-related set of fundamentals which validate the current move and warrant opening a swing long? <\/p>\n<p>Apparently, the analysts at VanEck, a multi-billion dollar asset management fund, think ATOM price will do a 160x move by 2030. <\/p>\n<p>Hard to believe isn\u2019t it and perhaps a little bit far fetched, but see for yourself. Here\u2019s what they said: <\/p>\n<blockquote><p>\u201cBased on our discounted cash flow analysis of potential Cosmos ecosystem value in 2030, we arrived at a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.vaneck.com\/us\/en\/blogs\/digital-assets\/matthew-sigel-why-we-are-bullish-on-atom\/\">$140<\/a> price target for the ATOM token, with downside to $1. With ATOM\u2019s price at $10 as of 8\/2\/2022, we like the 14-1 odds presented and believe this is a buying opportunity for the token.\u201d<\/p><\/blockquote>\n<p>Let\u2019s take a brief look at their rationale for $140 ATOM. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Product_to_market_fit_and_a_secure_cross-chain_bridge_could_thrive_post_Merge\"><\/span>Product to market fit and a secure cross-chain bridge could thrive post Merge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>VanEck analysts Patrick Bush and Matthew Sigel cite Cosmos\u2019 Inter-Blockchain Communication Protocol (IBC) as a bullish catalyst primarily because \u201cseparate Cosmos SDK blockchains can open up communication channels to exchange data, messages, tokens and other digital assets.\u201d <\/p>\n<p>According to the analysts, \u201cIBC architecture then enables each blockchain to perform activities on another blockchain without relying upon a trusted third party.\u201d And it is this \u201cpermissionless and trustless\u201d aspect of IBC which:<\/p>\n<blockquote><p>\u201c&#8230;solves many of the issues presented by trusted bridging solutions that have led to over $1B in funds stolen through bridge hacks.\u201d<\/p><\/blockquote>\n<p>The analysts also cite the Cosmos SDK, clear product to market fit and strong token value accrual being partially influenced by staking and a soon to launch \u201cinterchain security\u201d mechanism by the Cosmos Hub as reasons for their long-term bullish perspective.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats_happening_on_the_development_side_and_roadmap\"><\/span>What\u2019s happening on the development side and roadmap? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>ATOM is set to become a primary collateral asset in three new stablecoins that will launch within the Cosmos ecosystem. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Why <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ATOM&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ATOM<\/a> is mooning?<\/p>\n<p>The main collateral in three new <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MakerDAO?ref_src=twsrc%5Etfw\">@MakerDAO<\/a> inspired stablecoins in the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cosmos?ref_src=twsrc%5Etfw\">@cosmos<\/a> ecosystem:<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USK&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$USK<\/a> by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TeamKujira?ref_src=twsrc%5Etfw\">@TeamKujira<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24IST&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$IST<\/a> by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/agoric?ref_src=twsrc%5Etfw\">@agoric<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24CMST&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$CMST<\/a> by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ComdexOfficial?ref_src=twsrc%5Etfw\">@ComdexOfficial<\/a> <\/p>\n<p>These 3 chains will need <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24Atom&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$Atom<\/a> to mint their stablecoins, locking up the supply.<\/p>\n<p>\u2014 Ericzoo.eth (@ericzoo) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ericzoo\/status\/1562585702847881216?ref_src=twsrc%5Etfw\">August 24, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Minting stablecoins will require the \u201clock\u201d or depositing of ATOM tokens and according to the Cosmos Hub 2.0 roadmap, liquid staking is also expected to roll out in H2 2022. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/ac77be1d-f665-46f3-a487-a4308b543b32.png\"><figcaption style=\"text-align: center;\"><em>ATOM roadmap details. Source: Cosmos Hub<\/em><\/figcaption><\/figure>\n<p>During DeFi Summer and the post-summer revival, stablecoin issuance and liquid staking were two phenomena that boosted TVL for DeFi-oriented blockchains and while questionable and somewhat ponzi-esque, liquid staking adds buy pressure to a protocol\u2019s native token, while also equipping it with utility within various aspects of the lending, borrowing and leveraging wings of decentralized finance. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/5c8d83b1-b5f6-491a-a12b-35588c5b300d.png\"><figcaption style=\"text-align: center;\"><em>Staked percentage of ATOM&#8217;s circulating supply. Source: Staking Rewards<\/em><\/figcaption><\/figure>\n<p>Current data from StakingRewards shows that 65.84% of issued ATOM tokens are staked for a minimum yield of 17.85% and additional data from the analytics provider shows a near 189% rise in the number of ATOM stakers over the past 30-days. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/d77bb3bc-6a50-4356-aa43-2849d380b3d8.png\"><figcaption style=\"text-align: center;\"><em>30-day increase in ATOM stakers. Source: Staking Rewards<\/em><\/figcaption><\/figure>\n<p>The above appears to align with the thesis that liquid staking and stablecoin minting will soon launch. Despite the confluence of these bullish indicators, it\u2019s important to remember that asset prices do not exist in a vacuum. While there may be a handful of bullish signals flashing from ATOM, the wider cryptocurrency market (including BTC) hangs at a precipice. <\/p>\n<p>No-one is sure that the elusive \u201cbottom\u201d is in and cryptocurrencies are risk-off assets that exist in a macroeconomic climate where most institutional and retail investors are opposed to risk. The value accrual propositions for ATOM are strong and staking, stablecoin minting and liquid staking proved to be powerful bullish catalysts for DeFi tokens and altcoins in the past. But everything works until it doesn&#8217;t, right? <\/p>\n<p>Remember Waves, Terra (LUNA) and Celsius (CEL)? All experimented with liquid staking, lending, asset collateralization and stablecoins, yet today they\u2019re belly up from a value perspective. <\/p>\n<p>Of course Cosmos isn\u2019t LUNA, Waves or CEL. It\u2019s a wide-ranging, cross-chain equipped ecosystem with a $12.6 billion market capitalization, according to data from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/categories\/cosmos-ecosystem\">CoinGecko<\/a>. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/atom-price-is-reaching-for-the-cosmos-but-why\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; ATOM price is reaching for the Cosmos, but why? &#8220; As a market crash takes place, assets become oversold and typically there\u2019s an \u201coversold bounce,\u201d \u201creturn to mean,\u201d \u201cmean reversion,\u201d or some price snapback to the bottom of the pre-crash range.\u00a0 Afterward, the asset under study either consolidates, continues the downtrend, or returns to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":487793,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvYmQ3MzUxMjMtMzcyMi00YzFiLTliZDctZmVkMmFhMGE3YmRlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74894,74863,74868,75916,74939,74876,75493,20093,73785],"class_list":["post-487792","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-blockchain","tag-cryptocurrencies","tag-defi","tag-dex","tag-market-analysis","tag-proof-of-stake","tag-stablecoin","tag-cosmos","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/487792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=487792"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/487792\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/487793"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=487792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=487792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=487792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}