Assessing the odds of Cosmos entering a bull rally
- Network activity was down as daily active addresses declined.
- The token’s weekly chart was red, but a few market indicators were bullish.
Cosmos [ATOM] has not been performing in the best interest of investors for some time now as its price charts were red. Apart from its price, the blockchain’s usage also witnessed a decline over the past month.
Read Cosmos’ [ATOM] Price Prediction 2023-24
However, LunarCrush’s data revealed quite a few bullish factors that made Cosmos the coin of the day on 7 August. Are there possibilities of LunarCrush’s finding reflecting on ATOM’s chart in the days to follow?
Cosmos network activity is going down the road
Artemis’ data revealed that the blockchain’s usage was declining. ATOM’s daily active addresses dropped sharply over the last few weeks. Not only that, but the blockchain’s daily transactions also declined, suggesting less usage of the blockchain.
The network value also registered a decline. This was evident from its TVL, which dropped after spiking in May 2023.
While its network stats declined, ATOM’s performance on the social front remained high. Cosmos Daily recently posted its weekly report, highlighting several social metrics. As per the tweet, Cosmos’ social engagement went up by 199%.
One-Week Social Signal of @Cosmos ⚛️
— Cosmos Daily ⚛️ (@CosmosATOMDaily) August 7, 2023
Bullish sentiment around the token shot up by over 80%. Santiment’s chart pointed out that its social volume remained high while its weighted sentiment improved, which looked optimistic for the blockchain.
Should investors expect a Cosmos bull run?
As social metrics soared, investors’ expectations of ATOM also must have increased. Thankfully, LunarCrush’s latest data gave hope for a price uptick.
As per the tweet, combining Cosmos’ Galaxy Score and Alt Rank, ATOM was the coin of the day on 7 August. But things were yet to reflect on its chart.
With leading combined LunarCrush Galaxy Score™ and AltRank™, Cosmos is Coin of the Day!
Galaxy Score™ 43/100
Price $8.49 -0.096%
— LunarCrush (@LunarCrush) August 6, 2023
As per CoinMarketCap, ATOM was down by over 2.5% in the last seven days. At the time of writing, ATOM was trading at $8.56 with a market capitalization of over $2.9 billion. A look at its daily chart also pointed out a few bullish indicators.
For instance, the Relative Strength Index (RSI) gained upward momentum and was headed toward the neutral mark. Cosmos’ Chaikin Money Flow (CMF) also followed a similar increasing trend, suggesting a price uptick.
Realistic or not, here’s ATOM’s market cap in BTC terms
However, nothing can be said with the utmost certainty as the Exponential Moving Average (EMA) Ribbon continued to be in the bears’ favor.
On top of that, investors in the derivatives market were also buying ATOM at the current price. This was evident from its green Binance funding rate. Additionally, its open interest also went sideways. Therefore, there were chances of ATOM continuing its current price trend.