Cosmos price moved sideways on Tuesday as investors focus on the latest update by the developers. ATOM was trading at $14.45, which was slightly below last weekend’s high of $16.91. It has risen by more than 156% from the lowest level this year, giving it a market cap of more than $4.2 billion.
Cosmos new vision
Cosmos is a leading blockchain project that aims to solve some of the biggest challenges in the world. It is used to ensure that cryptocurrencies created in different chains can communicate with each other.
At the same time, the Cosmos SDK has been used to build some of the most popular projects like Injective Protocol, ThorChain, and Osmosis. Cosmos also introduced social coordination technology, interchain security, interchain allocator, and liquid staking
Cosmos is now moving to the next stage of its development. In a statement, the developers said that the original vision they had been realized.
In the new Cosmos whitepaper, the developers said that the next part of the platform’s transition will be to strengthen its interoperability and security. Also, there will be more emphasis on ATOM, the native coin for the Cosmos ecosystem.
One of the key changes that will come in Cosmos will be the reinvention of the Cosmos Hub as the interchain web. As a result, this will enable other Cosmos blockchains to borrow the validator pool to secure their networks.
All these changes are now proposals and the governance individuals are assessing and voting for or against them. The changes will then happen on October 3rd of this year.
The new changes happen as more developers continue shifting to the network. dYdX, one of the biggest decentralized exchanges (DEXes) is moving to its platform. And in August, Delphi Labs announced it would shift focus of its research and development toward Cosmos.
Cosmos price prediction
The daily chart shows that the ATOM price has been in a strong bullish trend in the past few weeks. Along the way, the coin has formed an ascending channel that is shown in black. It is now along the lower side of this channel.
Cosmos has moved above the 25-day and 50-day moving averages while the MACD has continued falling. The price is along the 23.6% Fibonacci Retracement level. Therefore, ATOM price will likely continue rising as bulls target the upper side of the channel at $20, which is a 40% increase.
The big headline to start the week was the British pound falling to an all-time low, following announcements from new Prime Minister Lizz Truss that a series of tax cuts would be introduced.
Investors feared this would undermine confidence in the pound, and the sell-off tanked the value down to a historic low of $1.03. Headlines were full of talk about the Armageddon-type move, the future of the pound and what it meant going forward.
One thing which struck me – it shows quite how far we still have to go if Bitcoin is to be considered a sound form of money.
As can be seen in the below chart, the pound fell close to 7%, down to $1.03, before bouncing back up to where it now trades at $1.07.
On the flipside, if we look at Bitcoin’s daily returns, this 7% drop is just a walk in the park. I have plotted the daily returns of Bitcoin over the last year to illustrate this below. In fact, there have been 23 occasions over the last year alone where Bitcoin has had a daily move of a magnitude of 7% or greater (11 downward, 12 upward).
Obviously, for a currency or a store of value, this is totally unacceptable – which is precisely why Bitcoin can be considered neither, for the time being at least. And it has a long way to go.
I am on record as a staunch believer in the power that Bitcoin holds, but it’s simply preposterous to declare it as a reputable store of value right now. The pandemonium around the 7% plummet in the GBP shows this better than anything. A 7% barely makes headlines at all in cryptoland.
I saw the limits of Bitcoin first-hand when I went to El Salvador this summer. Citizens reported feeling uneasy with the volatility, and many set up their native Chivo app to immediately convert whatever Bitcoin they received via their businesses into USD so they did not have to bear the volatility.
One stat should be all you need to hammer home how far Bitcoin has to go: the world’s biggest cryptocurrency is down 70% from its all-time high less than a year ago (November 2021). Imagine being 100% allocated to Bitcoin and referring to it as a store of value? It’s quite simply objectively wrong.
Is Bitcoin becoming less volatile?
I plotted the below charts of all daily moves in Bitcoin in percentage terms going back to 2014. The results don’t point towards volatility reducing in any great manner.
However, it really is only in the last two years – the COVID era – that Bitcoin has truly become mainstream. Before that, it was largely a niche asset operating in esoteric corners of the Internet. It thus may be the next couple of years that will be the most significant with regards to a fall in volatility.
One thing is for sure, the volatility right now in the GBP is causing mayhem, and that shows precisely how far Bitcoin still has to go to achieve its goal of becoming a reputable store of value.
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LUNC is up by more than 50% in the last 24 hours after Binance implemented a tax burn mechanism on Terra Classic trading fees.
LUNC, the native coin of the Terra Classic ecosystem, is the best performer amongst the top 100 cryptocurrencies by market cap.
It has added more than 50% to its value in the last 24 hours and is now trading at $0.0003004 per coin.
The rally comes as the broader cryptocurrency market recovers from its poor start to the week. The crypto market has added more than 3% to its value in the last 24 hours, with the total market cap now around $960 billion.
Bitcoin is eyeing the $20k level for the first time in more than a week after surging by nearly 5% so far today.
Ether, the second-largest cryptocurrency by market cap, is also up by more than 4% today and is trading at $1,364 per coin.
LUNC’s rally comes after Binance, the world’s largest crypto exchange, implemented a tax burn mechanism on Terra Classic trading fees.
Binance said it would implement a burn mechanism to burn all trading fees on LUNC spot and margin trading pairs by sending them to the LUNC burn address. The specific amount of LUNC to be burned, its equivalent value in USDT and on-chain transaction ID will be updated each week.
Key levels to watch
The LUNC/USD 4-hour chart has turned bullish as Terra Classic has been performing well over the last 24 hours.
The MACD line is within the positive territory, indicating that LUNC has become bullish. The 14-day RSI of 62 shows that LUNC could soon enter the overbought region if the rally continues.
If the bulls remain in charge, LUNC could move past the first major resistance level at $0.00033188 before the end of the day.
In the event of an extended rally, LUNC could surge past the second major resistance level at $0.0004011 over the next few hours.
Where to buy now
As LUNC is such a new asset, it’s yet to be listed on major exchanges. You can still purchase LUNC using a DEX (decentralised exchange) though, which just means there are a few extra steps. To buy LUNC right now, follow these steps:
1. Buy ETH on a regulated exchange or broker, like eToro ›
We suggest eToro because it’s one of the world’s leading multi-asset trading platforms, an exchange and wallet all-in-one with some of the lowest fees in the industry. It’s also beginner-friendly, and has more payment methods available to users than any other available service.
2. Send your ETH to a compatible wallet like Trust Wallet or MetaMask
You’ll need to create your wallet, grab your address, and send your coins there.
3. Connect your wallet to the 1Inch DEX
Head to 1Inch, and ‚connect‘ your wallet to it.
4. You can now swap your ETH for LUNC
Now that you’re connected, you’ll be able to swap for 100s of coins including LUNC.
The cryptocurrency has started another week with low volumes. Bitcoin is still stuck around the $19k, and most altcoins are yet to make any moves. The good news is that with such low volumes, a small spike in buying volumes could see most cryptos turn green in the short term.
With this in mind, it makes sense to start scouting for altcoins with the potential for a price spike. Below are some of the cryptocurrencies that could do well before September ends.
Cosmos (ATOM)
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Cosmos (ATOM) has been holding up for the better part of September, even as the rest of the market turned heavily bearish. If it keeps making gains while the rest of the market stagnates, investors could FOMO in and drive ATOM to new heights in the short term.
Besides ATOM’s price action indicating a potential rally, there is much to look forward to for ATOM in the coming days. For instance, Cosmos is in the process of launching Interchain Security (ICS), and it’s a big deal.
That’s because it allows Cosmos validators to secure and generate blocks for other chains. This will give even more value to the Cosmos token and further add to the intrinsic value of the Cosmos ecosystem. This factor could see ATOM easily emerge as top-performing crypto in the coming days and potentially make its debut in the top 10.
Polkadot (DOT)
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Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.
Polkadot (DOT) is one of the top cryptocurrencies with big news, and it’s responding pretty well. The big news around Polkadot is that Tether is launching on Polkadot. While the price is yet to make any significant moves, DOT seems to be forming a potential breakout pattern on the weekly charts. If the broader market gains upside momentum, especially with Bitcoin breaking through $20k, then Polkadot could easily start October 2022 in double or even triple-digit gains.
Compound (COMP)
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eToro is one of the world’s leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It’s social copy trading features make it a great choice for those getting started.
Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.
Compound (COMP) has been gaining upside momentum for the past week. While there is no major news around Compound (COMP), the increasing price momentum will likely draw in speculators scrambling for any gains in a highly depressed market.
Such FOMO buying could be reinforced by the fact that Compound is not just a random altcoin. It is one of the older and better-known DeFi cryptocurrencies in the market today. This makes it a pretty logical bet for anyone that believes the future of cryptocurrencies is in DeFi. Compound’s low supply further adds to its potential to rally, especially if it gets enough momentum from speculative investors.
Terra Classic (LUNC)
As LUNC is such a new asset, it’s yet to be listed on major exchanges. You can still purchase LUNC using a DEX (decentralised exchange) though, which just means there are a few extra steps. To buy LUNC right now, follow these steps:
1. Buy ETH on a regulated exchange or broker, like eToro ›
We suggest eToro because it’s one of the world’s leading multi-asset trading platforms, an exchange and wallet all-in-one with some of the lowest fees in the industry. It’s also beginner-friendly, and has more payment methods available to users than any other available service.
2. Send your ETH to a compatible wallet like Trust Wallet or MetaMask
You’ll need to create your wallet, grab your address, and send your coins there.
3. Connect your wallet to the 1Inch DEX
Head to 1Inch, and ‚connect‘ your wallet to it.
4. You can now swap your ETH for LUNC
Now that you’re connected, you’ll be able to swap for 100s of coins including LUNC.
Terra Classic (LUNC) has recently dropped hard after Interpol raised a red alert on founder Do Kwon. However, Terra Classic seems to have overcome this shock and is up in double digits. If this reinspires momentum around Terra Classic, it could easily end the week among the best-performing cryptocurrencies and one with good prospects throughout October.
The token has been getting boosts from the expected ATOM 2.0
ATOM formed a double top and is correcting but maintains an uptrend
Cosmos ATOM/USD trades 2.93% lower in the last 7 days as of press time. A bearish MACD crossover confirms a bearish market. The token has, however, recovered 4.83% in 24 hours. Should this send shivers that ATOM is now bearish?
ATOM seemed to lose a bullish surge after getting rejected at $16 twice. That resulted in the formation of a double top. Nonetheless, it should be remembered that the token has been bullish since a low of below $6 in mid-June. The cryptocurrency trades at more than double price at $14.4 from the bottom price.
ATOM’s strengths emanate from the Cosmoverse conference, which starts on September 26 to 28. This is when fans will have a chance to get the details of the much-speculated ATOM 2.0. In the past, ATOM has been criticized due to its inflationary features. ATOM’s inflation depends on the token’s staking percentages. ATOM 2.0 is expected to address the inflation through a hard cap on the supply or burning mechanism.
ATOM corrects to the $13 minor support
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eToro is one of the world’s leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It’s social copy trading features make it a great choice for those getting started.
Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.
On the technical front, ATOM is trading slightly above minor support of $14. The latest correction pushed the token below the 20-day MA. However, the token keeps the 50-day MA intact, coinciding with an ascending trendline.
The MACD indicator shows a bearish crossover in line with ATOM correction. At the current level, the upside looks subdued by a weak momentum. However, the bulls are defending the $13 level.
Concluding thoughts
The Cosmoverse event will be highly watched as it could determine whether ATOM will remain bullish. Still, at the current level, we cannot consider ATOM’s bull run over since it remains above the ascending trendline. If bears manage to take the token below $13, the next level will be $12.
Source – TradingView