Key Takeaways:
- Interoperability blockchain Cosmos gained 60% since Dec. 29, making the top 25 crypto list amid market stagnation.
- Its native token ATOM could be headed for $80 in the current quarter, based on a weekly chart setup.
YEREVAN (CoinChapter.com) – Cosmos made a foray into the top 25 cryptocurrencies, with a $9.4 billion market cap. The altcoin led the parade of best performing cryptos in the previous week, with a nearly 60% uptrend, and traded at $41.6 in Wednesday’s European session.
The digital asset established a new all-time high at $43.9 on Jan. 4; however slightly corrected the following session. Additionally, the weekly gains supplied ATOM with a Golden Cross on the daily chart. The formation occurs when a short-term moving average (MA) crosses above a long-term MA. The Cross promises gains for as long as the short-term MA can keep the dominant position.
Cosmos’ Cross between the 20-day exponential MA (EMA-20) and EMA-50 is a result rather than a cause for an uptrend. However, the EMA-20 could prove instrumental in halting a correction, should one occur.
Also read: Cosmos (ATOM) eyes a 160% uptrend on a confluence of bullish factors.
Moreover, the latest rally complied with a larger pattern, best visible on the weekly chart. As CoinChapter predicted in the previous Cosmos review, the mid-December uptrend, and its possible continuation fall in line with the Ascending Channel, described below.
Cosmos (ATOM) weekly chart promises a 100% surge
The good news for ATOM continues with the Ascending Channel on the weekly chart. The Channel features two parallel trendlines that enclose the price action and drive it up while maintaining the price swing. In addition, cosmos’ token retested the Channel’s support in mid-December, hinting at an upcoming rally to approximately $80 at the resistance trendline.
If the Ascending Channel remains relevant in Q1 2022, ATOM will be poised for a 100% gain, printing new all-time highs. The upcoming sessions will show if the prediction has merit.
Also read: Fantom (FTM) steals show in crypto market as it shoots for ATH, spike 17%.
Meanwhile, interoperability blockchain adoption grew in the crypto community, as evidenced by Cosmos’ and Chainlink’s surges in the previous week.
Cosmos adoption grows
As the network reported on Jan. 3, Cosmos supports a “shared economy of $75 billion.” It connects 28 chains and has monthly inter-blockchain communication (IBC) transactions at $2.8 million.
Additionally, the company announced an upcoming blockchain upgrade scheduled for Mar 2022. Mason Nystrom, the Senior Research Analyst at Messari, pinpointed the main targets for the Theta upgrade. He mentioned that the upgrade could enable Meta-transaction, NFT modules, Interchain accounts and present a roadmap for the year ahead.
Also read: Ethereum (ETH) price headed for $5K while flashing a bearish setup—what’s ahead?
While Cosmos faces a network upgrade in Q1-Q2 2022, the ATOM price might follow suit and print new all-time highs. The ATOM weekly chart technical supports the bullish prognosis, pinpointing the next target at $80, a nearly 100% uptrend from the current price of $41.6.
