First, What Is ATOM?
Cosmos Hub (ATOM) is something unlike any other blockchain coin, token, or even ecosystem. The Cosmos network consists of many independent, parallel blockchains, called zones. Basically each zone is an app or purpose specific blockchain that connects through Cosmos Hub’s Inter Blockchain Communication protocol. This allows for much better scaling and interpretability.
Lately the Cosmos ecosystem has been exploding with many different app specific chains trying to make their way in the space. All of the chains in the Cosmos ecosystem are delegated proof of stake chains that rely on validator node operators to run the blockchain, and those who stake tokens will choose one of these validators to delegate their tokens to. This comes into play with earnings and governance.
Taking A Look At The ATOM Charts
ATOM has been on Mr. Toad’s wild ride the past year or so, having lows in the single digit range around the $7 rand all the way to the $45 range with some big swings both to the upside and downside, many of these happening along with the rest of the markets.
ATOM at times defied the rest of the markets and went on some small runs while others went the other way. That is partially to the airdrop model that was started with many of the IBC chains are distributing their coins. ATOM is the prime coin in the ecosystem and most require certain size stakes of the ATOM token. This caused some major ‘FOMO’ runs where people were piling into ATOM and staking to qualify for these airdrops.
Over this time, ATOM has continued to form higher lows and creating a pretty significant uptrend and forming a double bottom as you can see on the daily time frame.
Adding In Some RSI Action
Adding in the RSI to the chart and we can clearly see that this uptrend for ATOM is being legitimized by the momentum. Without seeing any divergence on the charts, we can assume that the momentum and the price trend are going to continue to follow each other. This can help to predict the future movements.
The RSI is still in bullish territory, nowhere near overbought, and plenty of room to run. If for some reason this uptrend is broken to the downside, then we will need to be watching the $25 level first, but with the momentum in the direction it is going, that move may not happen for some time, if ever.
Taking A Look At The Different Time Frames
On the short term, we see that ATOM has been on a bit of a down trend, but is looking to find a bottom on the 1 Minute time frame. The 1 Hour time frame seems to be finding some support at the current levels and the current candle is turning to the green side. If this level holds we can see some short term consolidation before another move up.
On the longer term time frames, you can see the double bottom we were talking about on the daily time frame and even though having a small retracement, it is still looking real strong. On the Weekly time frame we are still showing even more long term upside strength. Again, corrections are always expected, so be looking for strong support and resistance levels to be hit.
On That Note…
Adding in some Fibonacci retracement levels will show the different retracement levels that could be hit when if there is a break to the downside, if that were to happen. But on the daily, from the last big bottom to the last bit top, we have already had a major retracement on ATOM and settled on the .78 level which is a hard stop level in many markets. You can see that we are currently back over the .61 FIB level which is showing that ATOM is on the move up, and not looking to stop soon. Typically, when you have these type of uptrends, you won’t see major corrections unless there is some crazy black swan event.
Needless To Say…
I am extremely bullish on the Cosmos Hub ecosystem and what is being built over there. So many awesome projects coming up. Come check out what all is happening in this space and all of these different IBC blockchains that are building their own internal ecosystems in interact with the greater connection of blockchains… It’s just crazy, lol.
In the next TA post we will be looking at the first major airdrop that came to the Cosmos ecosystem that started this whole mad rush into the space, Osmosis.
@thelogicaldude, is a tech and cryptocurrency enthusiast with years of experience as a designer, website developer, and technical educator. His crypto journey saw him leave the comfort of a long career with Apple to start his own blockchain based businesses. The Logical Dude is the creator of Coin Logic, Blocktunes, Hivelist, and Hivehustlers.
Nothing we say is financial advise.
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