In September 2022, Interchain Foundation, the team behind Cosmos’ development ,
Since the beginning of 2023, ATOM’s price has increased by 61%, which can be partly attributed to the broader rally in the crypto market. Nevertheless, the gains were still larger compared to Bitcoin (BTC) and Ethereum (ETH), which gained 48.10% and 43.20%, respectively.
Coinglass data shows a steep spike in the open interest (OI) volume for ATOM futures orders to $92 million from $65 million, setting the token up for increased volatility. The funding rate and long vs. short ratio suggest that the interest was primarily in long orders. An over-leveraged futures market can provide headwinds for buyers as sellers will look to run the stops of long players.
The weekly chart of ATOM/USD broke above the 50-period exponential moving average (EMA) at $14.20. The metric has acted as a pivotal level for trend reversals. If the price closes above the 50-week EMA at the end of February’s first week, technical buyers will look to accumulate ATOM for a swing trade.
The bulls will target the resistance levels at $17.20 and $25.20 if the uptrend continues. On the downside, long term support lies at $6.50 and $3.10.
The Cosmos community has long anticipated the Interchain Security feature. Thus, the token has a higher chance of sustaining its breakout, at least leading up to the launch.
The growth and the proportion of yield it brings will either keep the bullish momentum alive before the Interchain Foundation moves to the next update or see a fading momentum until the proposal to improve ATOM emissions is finally passed by the community.
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