ATOM’s mediocre surge could interrupt Cosmos’ moment of glory. Here’s why…
- Cosmos achieves a major step forward with the first consumer chain scheduled for launch.
- ATOM defies sell pressure in favor of some upside but low market confidence may be limiting.
Now that the crypto market is showing signs of more weakness, it is important to explore which projects are still growth-oriented. Cosmos happens to be among them judging by its latest development.
The Cosmos network just announced that it is about to launch its first consumer chain after Proposal 792 was passed. The official launch is slated to take place on 10 May and it will mark an important milestone for the network. This is because the development network will pave the way for more utility.
It’s happening! The first Consumer Chain is coming ?
Prop #792 passed!@Neutron_org will enter the Atom Economic Zone ⚛️
— Cosmos Hub ⚛️ (@cosmoshub) May 8, 2023
Such developments often have an impact on investor sentiment and hence the price of the underlying asset. Will that be the case for Cosmos’ native cryptocurrency ATOM? Well, a look at ATOM’s weighted sentiment revealed barely any reaction to the news.
On the other hand, ATOM’s on-chain volumes registered a noteworthy uptick in the last 24 hours. This confirmed that there was a significant reaction in the market.
This was also reflected in ATOM’s price action which bounced back after retesting its 0.618 Fibonacci retracement level at the $10.61 price point. ATOM traded at $11.06 at the time of writing.
Could this slight uptick in the last 24 hours underscore enough momentum for a sizable rally? ATOM’s Money Flow Index (MFI) slid further down in the last 24 hours, suggesting that there have been outflows despite the slight upside. It reflected the low excitement as shown by the weighted sentiment.
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Will ATOM continue to defy the downward gravitational pull?
Other noteworthy on-chain observations include a surge in the DYDX funding rate within the last 24 hours. We also saw a surge in negative funding rates in the last 24 hours. This may indicate that there was a surge in both demands for ATOM, as well as an increase in short positions against the cryptocurrency.
The development activity on the chain was also off to a slow start this month after declining for most of April. It registered a slight increase in activity in the first week of May, albeit relatively low activity. The consequence of such an observation was that it may have a negative impact on investor sentiment.
ATOM’s limited upside reflected the lack of confidence in the market, but it certainly highlighted some excitement among investors. It still managed to resist the downside at a time when top cryptocurrencies including Bitcoin [BTC] and Ethereum [ETH] have been tanking.