Cosmos [ATOM] sees highest daily rally amongst top 30 cryptos, but can it last
As we enter a new week, Bitcoin sat above $30k while Ether was just above $2k. Traders might be keeping their eyes fixed on the performance of the top 10 coins and tokens, but investors are also keeping themselves busy with assets from the top 30 list.
Not so atomic troubles
At press time, Cosmos [ATOM] was the 27th biggest crypto by market cap, and changing hands at $12.07. After rising by 14.61% in a day, it enjoyed the highest daily rally out of the top 30 coins, despite falling by 21.65% in the last week.
However, even as the coin’s prices were falling last week, volumes surged when investors presumably bought the dip to get ATOM at discount prices.
Is this a sign of investors’ faith in the Cosmos ecosystem? You could say that, as development activity certainly backs up the theory. In spite of ATOM’s plunging price, development activity was steadily increasing. This suggests that developers and builders do have some kind of faith in the project that isn’t affected by short-term price falls.
That being said, the effect of Terra [LUNA] and TerraUSD [UST] collapsing is undeniable. Many Cosmos investors were worried about the fallout of these developments on their own investments. Some also questioned how much UST and LUNA exposure Cosmos had prior to disastrous de-pegging.
To that end, Cosmos co-founder Ethan Buchman, insisted that Cosmos rose to the challenge and was not harmed. Buchman tweeted,
“The Cosmos Hub itself had little risk exposure, yet outsiders will conflate Terra=Cosmos. This is not the case. Cosmos is general purpose technology that provides communities with great power…”
“It’s also a good time to recognize how resilient and secure the @cosmos technology is. Terra put the @cosmos technology stack, including Tendermint, Cosmos-SDK, and IBC, through the ringer. This was one of the biggest crises to affect a live chain and the tech held up throughout.”
Bullseye or not?
Now, the question of the hour is whether or not ATOM is feeling bullish or bearish. The Bollinger Bands revealed that ATOM candles had crossed the lower band – indicating an oversold asset. With three new candles forming, it could mean that traders are now buying once more.
Adding to that, the Awesome Oscillator [AO] was also flashing a green bar – albeit below the zero line.
However, a red candle was forming at press time. It appears the jury is still out – in the cosmos.