Cosmos’ market cap surpasses billions but ATOM’s pullback could be imminent
- Active addresses on the Cosmos blockchain decreased as its market cap crossed $3.5 billion.
- ATOM’s direction could favor the bears despite bullish twin peak possibility.
The self-acclaimed internet of blockchains, Cosmos [ATOM] has reclaimed the $3.5 billion market capitalization after its token displayed a 40% increase in the last 30 days.
Realistic or not, here’s ATOM’s market cap in BTC’s terms
However, CoinMarketCap‘s data showed that the market cap has been receding in the last 24 hours. This was followed by a decrease in ATOM’s value.
Addresses pulling back the hub?
Information from Token Terminal showed that active addresses on the Cosmos network had lost its Midas touch.
The daily active addresses measure the number of participants involved in the transfer of an asset within a day. Between 1 – 23 January, the daily active addresses were on a non-stop increase.
However, the surge seemed to have declined. At press time, the blockchain financial data provider revealed that Cosmos’ active addresses were down to 16,300.
— Token Terminal (@tokenterminal) January 24, 2023
Outside of that, Cosmos has been enjoying tremendous contributions from its developers. According to Santiment, ATOM developers’ activity contributors count had reached several highs at different intervals.
However, it had decreased at the time of writing. In turn, it affected the on-chain development activity, which declined to 52.24. Nonetheless, the decrease might not be substantial to infer that the project’s commitment to upgrading its network was not a priority.
The viewpoint also linked some recent partnerships involving the Cosmos hub. On 23 January, Cosmos confirmed that the dYdX exchange was building on its network.
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) January 24, 2023
Defending the decision to choose Cosmos, exchange founder Antonio Juliano said:
“We believe that this is the best technology that we can build on. It can process more transactions and latency is way lower.”
This ATOM is negatively charged
On the daily chart, ATOM increasingly received support between 9 – 15 January. But the support was resisted at $12.12 and was since unable to replicate the form. However, indications from the Directional Movement Index (DMI) suggested that there could be a price rundown.
This inference was because the positive DMI (green) trended downwards even though it was at 26.70. On the other hand, the negative DMI (red) was 14.20.
Is your portfolio green? Check out the Cosmos Profit Calculator
However, the -DMI had begun an upward movement since 23 January. It also had the support of the Average Directional Index (ADX). At the time of writing, the ADX was extremely high at 43.13. Hence, ATOM could pull back further if these trends continue in the same direction.
Additionally, the exceptional Oscillator (AO) swung between red and green bars. Although there was a bullish twin peak in play, the inconsistency in reds and greens was not enough to confirm a bullish crossover.