ATOM Skyrockets Again By 35% To An All-Time High: Analysis

Cosmos’ ATOM skyrockets again by 35% to hit an all-time high as the 17^th largest cryptocurrency by market cap surged again and reached $8.67. In today’s altcoin news, we are reading more about it.

Comos’ interoperable blockchain token ATOM skyrockets again while on the roller coaster ride in the past 24-hours. The cryptocurrency established a new high of $8.67 and the ATOM/USD exchange rate increased as more traders showed an appetite for the decentralized finance projects. Cosmos has amassed the string of successful DeFi projects earlier including Band Protocol, Terra, Kava, and ThorChain since they mirror the services of Ethereum-backed DeFi protocols. They bring critical modules and aim to create a workable decentralized financial ecosystem.

The latest ATOM price rally had nothing to do with Cosmos’ potential as a blockchain platform. Instead, if followed the hype that stayed around the Defi sector in the past three months so it seems that there’s no market movement event during the previous two days which could shot the price upwards. This left the token under the influence of speculators such as Bitcoin which reported a huge intraday loss. It seems that the influential traders decided to hedge with ATOM and caused a short-term upside movement.

ATOM/USD corrected lower by more than 8% and the pair was trading close to the $7.79 showing that the traders utilized the peak levels for profit-taking. Bitcoin’s price also surged by 2.39% to above $11,800 which also reflected traders’ inclination to sell one asset at a local top and to purchase another one during the lows. ATOM’s upside bias now hangs on the traders’ willingness to purchase the local highs as the Fibonacci retracement graph shows the price could even hit the $10.56 level as a new resistance level. In the meantime, it expects to float above the new support level of $7.13 to maintain the short-term bullish bias.

Cosmos is likely to receive attention thanks to the booming DeFi space but despite the similarities, the projects listed under this network have lower market caps than the one listed under Ethereum. According to a Messari report:

 “Several of them though have started to see some lift in the markets, suggesting DeFi enthusiasm is beginning to bubble over into other networks. The  current valuation disparity makes it worthwhile to explore the relative value of the Cosmos ecosystem to that of Ethereum.”