Ethereum-Rival Cosmos Hits 10-Week High Following “Stargate” Announcement
- Valuation of Cosmos, the 25th-largest blockchain project by market capitalization, hit its 10-week high on Monday.
- The surprise surge came as a part of a macro market price correction led by Bitcoin’s 2 percent jump.
- Cosmos’s price rally also appeared as an extension of its last week’s upside move, with a critical network upgrade announcement acting as a crucial bullish catalyst.
Cosmos’s native blockchain asset ATOM surged to its 10-week high on Monday, while hinting a further move to the upside in the next sessions.
Cosmos (ATOM) price showing signs of recovery from its seven-month downtrend. Source: TradingView.com
The ATOM/BTC exchange rate rose by as much as 6.01 percent to 3,304 sats. The jump appeared after a week of continuous bullish moves, wherein the pair gained 17.80 percent. On the whole, ATOM surged by as much as 36.34 percent from its June 27 low of 2,551 sats.
Gains in Cosmos price on Monday followed similar upside moves in the cryptocurrency market.
Bitcoin, which has been trending flat since the last two weeks, shows first signs of breaking out to the upside as its price rose by circa 2 percent. That prompted its highly correlated assets, including Ethereum, XRP, Bitcoin Cash, and others, to rise alongside. Cosmos merely tailed the trend.
Ethereum (ETH) price rose by more than 4 percent on Monday. Source: TradingView.com
Nevertheless, the ATOM/BTC pair was able to deliver one of the highest intraday gains. Part of the reason was its prevailing uptrend that began on a pullback from 2,551 sats on June 27. Meanwhile, the upside sentiment itself took cues from an important announcement.
The Cosmos team is starting to think about how the changes in Stargate our going to effect the larger ecosystem of Cosmos SDK chains.
Super curious what teams building on the SDK think of about Frey's launchpad suggestion.
Feedback in the Cosmos Discord #stargate is appreciated pic.twitter.com/iHqG7P2lvG
— Zaki Manian (@zmanian) June 21, 2020
Team Cosmos on June 23 shared details on Stargate, its next major network upgrade. The updated version expects to introduce new interoperability features and various performance improvements into the Cosmos blockchain.
The main feature is the Inter-Blockchain Communication Protocol (IBC). The long-awaited interoperability tool will enable the exchange of cryptocurrencies and data across multiple Tendermint-based chains. Cosmos expects to introduce IBC as a settlement layer between the blockchains of different companies and projects.
Cosmos’s reversal from its 7-month long downtrend also confirmed a bullish pattern. Dubbed as Double Bottom, the indicator forms when an asset forms two consecutive lows with a moderate peak in-between. The pattern can be seen in the chart above.
The ATOM/BTC pair is now in the penultimate stage of the Double Bottom, looking to break above its resistance level of 3,310 sats. A breakout will flip the level to support, from where the ATOM price would keep its bullish target affixed at 4,080 sats.
Meanwhile, a correction from the 3,310-resistance would have Cosmos test its 20-DMA (green) and 50-DMA (blue) as support levels.
Photo by Claire Satera on Unsplash
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