Cosmos (ATOM) has managed to pull it off despite the decline in demand due to a bearish market.
- Altcoin rallied by 27% in the past week
- Cosmos’ integration with DOT, ETH to trigger a spike in demand
- ATOM price experiences exhaustion
ATOM has been remarkably bullish since June and in fact, dubbed to the one top-performing cryptocurrencies in the past three months.
The altcoin was on a bull run as seen in the past week, rallying by as much as 27%, following its rebound from the ascending support line.
In the face of an upswing, ATOM is showing signs of a pullback especially since it appear to be hovering within the key resistance zone as of late.
Could ATOM be nearing its exhaustion phase? Is it time to throw in the towel?
ATOM Facing Bearish Retracement
ATOM has suffered a massive drop in May as it tested its resistance zone. The altcoin was not able to move past the key resistance level on August 24 and 25.
As it is, Cosmos seems to be pushing through hurdles at the same level for the past few days.
As of press time, the crypto is experiencing a bearish retracement. According to CoinMarketCap, the crypto’s price has nosedived by 6.19% or trading at $11.84.
However, it’s selling activity remains incredibly low which might be connected to the updates or developments going on within the Cosmos network. There is a huge possibility that this can increase the demand for ATOM.
Regardless, ATOM looks promising and healthy for long-term alongside the rest of the other cryptocurrencies.
Integration With DOT, ETH To Trigger Pump
Cosmos’ integration with Polkadot and other developments with other networks like Ethereum Beacon have also amplified the demand for DOT and vice versa.
These partnerships are healthy, collaborative, and mutually beneficial and can pull the price up for the networks involved.
The Ethereum Merge, which is a collaboration or merger in between ATOM and the Ethereum Beacon Chain has also set the stage for upgrades in terms of scaling and sharding that could happen on September 15.
This merger is said to help with decreasing the energy consumption level of Ethereum by as much as 99.59% as validators will be replacing miners in staking ETH holdings.
A minimum of 32 ETH is required to stake. Despite the recent rally, investors can still get ATOM at a discounted price.
Like other cryptocurrencies, ATOM has plunged to a new low. August wasn’t a good month for the altcoin as investors seem to have abandoned it in search for more viable cryptos while some oversold their holdings.
While ATOM started at a solid footing during its launch, the crypto crashes have made it entirely difficult for the altcoin to perform better in the bear market.
ATOM total market cap at $3.38 billion on the daily chart | Source: TradingView.com Featured image from Freepik, chart from TradingView.com