Cosmos Adds Interoperability, Sending ATOM Higher
0 Comments

Key Takeaways

  • With Cosmos’ added interoperability, projects in the Cosmos Hub will be able to exchange data and tokens with each other. 
  • The announcement has generated attention because it will foster economic collaboration through the blockchain ecosystem.
  • ATOM looks primed for a bullish breakout, as a particular technical indicator has flashed a buy signal. 

Cosmos has expanded interoperability with other blockchains, pushing the price of ATOM through a crucial resistance barrier.  

Cosmos Opens the Interoperable Era

In a nearly unanimous vote, ATOM token holders have enabled Cosmos’ Inter-Blockchain Communication (IBC) protocol. 

The new feature will allow the Cosmos blockchain to work in conjunction with other networks that have upgraded to the IBC standard. Essentially, it makes it possible for independent blockchains to transfer digital assets and data between one another.

According to Tendermint CEO Peng Zhong, the passing of Proposal 41 marks a momentous milestone in the evolution of the Cosmos ecosystem as it builds the foundation for interoperability. 

“The permissionless transfer of tokens value across chains is a historic moment on the timeline … We will continue to focus on building the Cosmos Hub as the heart of the interchain — enabling trade and connecting politically sovereign chains to create a new paradigm for economic exchange,” said Zhong.

The blockchains built on Cosmos’ native consensus model—including Kava, Agoric, Foam, and Crypto.com—will likely be the first to adopt the IBC standard, putting an end to network tribalism. This protocol’s flexibility and open nature might foster economic collaboration to build a robust ecosystem of networks. 

IBC token transfers are expected to bring a significant amount of visibility to the Cosmos Hub, and ATOM will likely benefit from it. 

ATOM Slices Through Resistance

ATOM, the native token of the Cosmos blockchain, rose by more than 7.60% upon the announcement that IBC will soon be activated.

The bullish momentum allowed this cryptocurrency to slice through a massive resistance barrier represented by the short-, mid-, and long-term moving averages on the 4-hour chart. ATOM also gained the 61.80% Fibonacci retracement level as support and looks poised to break through the 50% retracement level. 

The SuperTrend indicator flashed a “buy” signal within the same time frame as ATOM prices broke through the resistance cluster. A further spike in buying pressure could see ATOM rise towards the 38.20% or the 23.60% Fibonacci retracement level.  

These critical interest areas sit at $21.40 and $22.60, respectively. 

ATOM/USD on TradingView

Given the amount of interest and the confluence of multiple indicators around $19.50, this price hurdle suggests that bears will struggle to push prices down. Right now, the odds favor the bulls.

Disclosure: At the time of writing, this author held Bitcoin and Ethereum.

This news was brought to you by Phemex, our preferred Derivatives Partner.


The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Bitcoin Targets Record Highs After “Strongest Dip-Buying” …

Despite the overwhelmingly bearish sentiment in the crypto markets since mid-March, Bitcoin opened the new weekly trading session with a bang.   Bitcoin Whales Continue to Accumulate High-net-worth individuals are accumulating…

Visa Allows USDC Payments on Ethereum

Visa now supports cryptocurrency transactions with direct acceptance of payments in USDC. Visa Leverages Ethereum to Settle Payments While the company has supported digital currencies in the past, working closely…

What is Dogecoin?

So what is the story behind DOGE? How did it become the asset of choice for a group of anti-establishment retail traders in January 2021, and what are the chances…

Justin Sun Launching NFT Fund, Minting Beeple on TRON 

Justin Sun, one of crypto’s most controversial figures, has his sights set on the NFT market.  Justin Sun Launches JUST NFT  Justin Sun, the founder of the TRON blockchain, is…

Leave a Reply

Your email address will not be published. Required fields are marked *