While top coins retraced a bearish trend and lost most of their weekly gains, Cosmos (ATOM) held on by 18.29% last week. Besides ATOM’s 1.0% price decline on March 12, it recorded successive rallies over the past seven days.
The token scored notable price gains on March 10 and 11, then from March 13-15, bringing it to its current price of $12.59. But ATOM has recorded a 0.73% price loss in the last 24 hours.
Factors Sustaining Cosmos (ATOM) Price Rallies
Earlier this week, the crypto market saw a brief relief from a long-running bearish trend caused by fear and uncertainty among investors. Even while three top US banks faced turmoil, cryptocurrency prices soared with improved sentiment pushing the global market cap by nearly 9%.
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This was partly due to the reassurance from the US Fed’s interference to calm the situation. The Federal Reserve announced a Bank Term Funding Program to assist troubled banks in settling aggrieved customers.
Furthermore, the long-awaited February CPI report came out on March 14. The CPI data came out slightly lower than January CPI, similar to economists’ predictions. Hence many cryptocurrency prices, including ATOM, soared on March 14.
However, there is still uncertainty in the market as investors anticipate the Federal Reserve meeting on March 21. It would determine the next basis point for an interest rate hike.
Besides market sentiment, ATOM’s 18% weekly gain is higher than most coins’, as some have surrendered theirs to the bears. The latest version of Cosmos SDK could influence ATOM’s price since it opens the ecosystem to high-performance applications. Cosmos touted its new SDK v0.47 (Twilight) as the world’s most used blockchain-building framework. According to its tweet, Twilight comes with a boost in SDK performance and functionality.
On March 16, Cosmos Hub tweeted that it upgraded to V9 (Lambda Upgrade) on Wednesday, March 15, while urging users to anticipate another update called Neutron. The report disclosed that Lambda functions as a replicated security on Cosmos Hub and would see the onboarding of consumer chains to the blockchain. The Lambda hub is sparking bullish sentiment for the Cosmos crypto community and might be responsible for ATOM’s price performance.
Cosmos (ATOM) Might Be Gearing Up For Another Rally
ATOM price is down by 0.73%, with a 31.57% decline in trading volume. This suggests that most of ATOM’s gains came from the previous days’ rallies. But the loss is slight and hasn’t reached an alarming rate yet. This trend indicates the coin might recover the value lost over the past 24 hours.
ATOM is still in an uptrend today, despite recording a slight pullback. Cosmos has posted three previous green days forming higher highs on the daily chart and confirming the uptrend. Also, ATOM is in the upper channel of the Bollinger bands, which suggests that the asset is overbought and might retrace soon.
ATOM has fallen below the 50-day SMA, hinting at a short-term retracement to the downside. But its price above the 200-day Simple Moving Average (SMA) shows a long-term bullish signal.
Featured image from Pixabay and chart from TradingView.com