Key Takeaways:
- Cosmos (ATOM) surged 7% in 24 hours and 45% in a week.
- ATOM daily chart pained a bullish picture, with a possible setback.
YEREVAN (CoinMarket.com) – Cosmos (ATOM) jumped 7% to nearly $33 in Thursday’s Asian-Pacific session, rounding up its weekly gains at 45%, the highest among the top twenty cryptos.
Additionally, ATOM eyed a 25% further uptrend if the price action stayed in the current bullish formation. In detail, the token formed a pattern resembling an Ascending Triangle. A resistance bar, significant since mid-Sep. 2021, constituted the upper horizontal trendline. The rising support trendline has assisted ATOM since July 2021.
The Ascending Triangle is a bullish formation, and it could take the token up to $40.0, a 25% additional uptrend from the current value. It also predicts an upside move equal to the maximal height between the trendlines if ATOM breaks the resistance bar. However, the digital asset doesn’t seem close to breaking out yet.
Could the bears prevail?
Furthermore, Cosmos’ token arrived at a crucial resistance that could undermine the upside move if ATOM fails to close above the line. In a bearish scenario, the token’s value could drop approximately 20% in the upcoming week and retest the support again at $25.0.
Also read: ATOM rebounds 7% intraday as Cosmos launch 'Interchain Accounts.'
In retrospect, the said resistance has hindered ATOM’s bullish attempts on multiple occasions throughout the past year. So Cosmos bulls might have to put substantial weight behind the rally to pull off a breakout. However, the trading volume declined on March 3 compared to the previous week, which doesn’t inspire much confidence.
On the other hand, developments in the Cosmos ecosystem might promote the Network further and, by extension, inspire traders’ confidence in ATOM.
Cosmos launched Evmos on the mainnet
As announced on March 2, Cosmos launched Evmos, the “next-generation Ethereum Virtual Machine (EVM) hub,” after several delays. Evmos initially planned the launch for February 28 but decided to take a few days for additional preparation.
Also read: Solana, Cosmos, and NEAR among the week's biggest crypto losers.
The launch was accompanied by an airdrop aimed at the Cosmos and Ethereum communities. The Cosmos ecosystem participants will get the majority of the airdrop, including Cosmos Hub, ATOM stakers, and Osmosis liquidity providers. In total, over 1.9 million addresses will be eligible for the airdrop.
