Here’s how Cosmos and Polkadot have forged closer ties
- Centauri has been launched to ensure interoperability between Cosmos and Polkadot.
- ATOM has seen a fall in buying pressure since the beginning of Q3.
To address the long-standing challenge of interoperability between the Layer 0 network Cosmos [ATOM] and Layer 1 chain Polkadot [DOT], Composable Finance announced the launch of Centauri via a blog post published on 11 July.
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According to the announcement blog post, while network interoperability has been a shared objective for both the Cosmos and Polkadot ecosystems, the lack of an effective system of connection between the two networks has hindered their progress and limited their potential user base.
Deployed to offer a solution to this problem, Centauri utilizes the Inter-Blockchain Communication (IBC) Protocol, which expands the functionality of the Cosmos-based apps beyond their previous limitations.
This integration will facilitate the live connection between Polkadot and Cosmos app chains, starting with the Picasso parachain and the popular Osmosis Decentralized Exchange (DEX).
ATOM feels the gravity of declining buying interest
The month so far has been plagued by a fall in the accumulation of ATOM coins. An assessment of the alt’s price movement on a daily chart revealed a steep fall in its key momentum indicators beneath their respective neutral positions.
For example, its Relative Strength Index (RSI) was 48.25 at press time.
Closer to the oversold territory, the Money Flow Index (MFI) indicator marked its spot at 37.44. These suggested a gradual decline in ATOM buying pressure as more investors took to distributing rather than accumulating.
Additionally, a negative Chaikin Money Flow (CMF) in the last two days suggested increased liquidity exit from the ATOM market. A CMF value below the zero line is generally seen as a sign of weakness in the market. At press time, ATOM’s CMF was -0.03.
Further, in the past few days, ATOM’s Awesome Oscillator Indicator has posted mostly short red histogram bars resting above the zero line. This suggested that the bearish momentum grew steadily.
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It implied that sellers were in control of the ATOM market, and there was downward pressure on the price at press time.
At the time of writing, the Negative Directional Index (red) of the Directional Movement Index indicator rested above the Positive Directional Index (green), confirming that ATOM sellers had control of the market.