Key Takeaways:
- The Internet of Blockchains Cosmos’ ATOM token logged 7% intraday gains and traded at over $25 on Wednesday.
- Cosmos introduced Interchain Accounts to the mainnet, boosting IBC.
YEREVAN (CoinChapter.com) – A recent run down in the Cosmos (ATOM) market attracted few buyers near the sessional lows, prompting the price to recover around 7% to $25.10 during the Asian-Pacific session on Feb. 23.
Bearish breakdown avoided – for now
ATOM’s price broke below a multi-month rising support trendline that somewhat constitutes an ascending triangle pattern. Notably, ascending triangle setups consist of horizontal resistance to the upside and upward-sloping support to the downside.
In a perfect scenario, the price breaks bullish out of the pattern and rises by the maximum distance between its two trendlines.
ATOM fluctuated inside a similar-looking setup from September 2021 until earlier this week. As it happened, the Cosmos token broke below the triangle’s lower trendline, albeit with lower volumes that showed there was not enough weight behind the downside move.
Also read: Cosmos (ATOM) eyes a 15% decline on an overall bullish setup.
Recently, the price retested the lower trendline as resistance to flip it as support. That raised the possibility that ATOM could still rise towards the upper trendline, amounting to a 63% upside move. The upcoming sessions will show if Cosmos complies with the bullish technicals and retests the triangle’s support again.
Additionally, the token’s relative strength index (RSI; purple graph at the bottom) dropped below 50, not suggesting a bearish incentive.
In detail, the RSI is a momentum indicator instrumental in determining the traders’ return expectations. When the indicator is in the 30-50 range, the bearish bias tends to prevail among investors.
Also read: Solana, Cosmos, and NEAR among the week's biggest crypto losers.
Meanwhile, the uptrend came in the wake of blockchain development, announced on Feb. 22.
Cosmos launched Interchain Accounts
The announcement claims that the Interchain Accounts can do much more than “connect and transfer tokens.” They provide access to all Cosmos chains enabled by IBC (inter blockchain communication technology) from the Cosmos Hub account.
As the cornerstone of the original Cosmos whitepaper, IBC has been designed around the enduring vision of a multi-chain future. […] In the 10 months since its launch, 38 chains have already joined the #IBCGang, conducting more than 9.3 million IBC transactions in a 30-day period.
read the blogpost.
Also read: Bitcoin will not recover anytime soon, warns analyst as BTC sinks below $40K.
Cosmos also commented that this is a “big deal” because it means Cosmos can access the application features of another chain and carry out any action native to that chain. Additionally, the company asserted that the developments would “dramatically improve” user experience and bring “much-needed” composability to the Cosmos ecosystem.
