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Decoding ATOM’s stern resistance despite this pending Cosmos rejection

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Cosmos [ATOM] co-creator Jae Kwon’s proposal to develop “one constitution” might not result in a favorable outcome for the founder. On 31 October, Kwon had proposed an interchain hub to foster the security of the Internet of Blockchain ecosystem. According to the proposal, the Cosmos Hub would provide a much-needed checks and balance economic mode for Cosmos.

Here’s AMBCrypto’s Price Prediction for Cosmos [ATOM] for 2023-2034

While Kwon might have thought that he was pushing a goodwill message, the Cosmos community seemed to believe otherwise. This was because voting at press time showed that over 85% of the voters rejected the proposal. A look at Mintscan, a Cosmos-based block explorer, 54 million out of the 202 million members of the community had voted.

Cosmos proposal voting

Source: Mintscan

A force to reckon with

Despite the rebuff, ATOM failed to follow a decreasing trend. According to CoinMarketCap, ATOM’s value had increased 7.09% between 3 and 4 November. Although the increase might be a good development for its investors, the volume showed that these same investors were not committed to seeing out a longer timeframe rally. This was because the 14.67% volume increase might not be enough to sustain the current uptick. As of 4 November, ATOM’s volume was 367.9 million based on Santiment data.

ATOM price and volume

Source: Santiment

However, it was worth noting that the reaction of ATOM was different from other proposals. For the ATOM “zero constitution” which was almost certain of rejection, the ATOM price declined for most of the period. Additionally, ATOM had a similar response to the proposed validator incentive when it exchanged hands with an 11% price increase. In light of this, it might be considered necessary to assess the price action.

Per the four-hour chart, ATOM had gained an excellent buying momentum against the United States Dollar (USD). As of 4 November, the Relative Strength Index (RSI), at 67.01, signaled massive buying power. However, closing in on an overbought RSI of 70 or more was most likely bound to reverse the ATOM price trend. 

The indications from the Directional Moving Average (DMI) showed that ATOM’s capability to maintain the greens was low. Although the buyers (green) positioned above the sellers (red), the Average Directional Index (ADX) in yellow, did not support a strong movement up the charts.

ATOM price action four-hour chart

Source: TradingView

Developments and socials had this to tell

As for the development activity and social dominance, it was a clear contest of contrast. According to Santiment, developments in the Cosmos ecosystem had increased. At a value of 59.88, it was certain that the Cosmos team were integrating upgrades to the network.

As for the social dominance, it was a case of declining interests in the cryptocurrency. Santiment data showed that, at 0.283%, ATOM was nowhere near the top of search discussions on social networks. Finally, the proposal discussed above was relatively at its early stages. With voting to close on 14 Novembers, there could still be a change of heart.

ATOM social dominance and development activity

Source: Santiment


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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