Cosmos (ATOM) hits a 10-week high after a recent announcement

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys playing cricket,… read more.
on Jul 7, 2020
  • ATOM price recently saw a major surge after the announcement regarding its Stargate upgrade.
  • The announcement has come over two weeks ago, and it had a long-lasting effect on the ATOM/BTC pair.
  • Now, the pair seems to be struggling with a strong resistance — one that can become a new support.

Cosmos (ATOM), one of Ethereum’s largest rivals, released an announcement regarding its next major network upgrade, Stargate. The announcement was published around two weeks ago, on June 23rd, and since then, it had a strong impact on the ATOM token’s price.

Cosmos’ Stargate announcement

The announcement said that the upgrade will introduce new features revolving around interoperability, as well as several performance improvements that would affect the project’s blockchain.

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The main feature is the so-called IBC, or Inter-Blockchain Communication Protocol. The interoperability tool is something that the ATOM community has been waiting for for a long time, and it is expected to allow crypto and data exchange on different chains, as long as they are based on Tendermint.

Cosmos will also use IBC as a settlement layer, that will act between different projects, companies, and the blockchain itself.

The announcement caused a major ATOM surge

Since the announcement came out, however, the exchange rate of ATOM/BTC pair saw a sudden rise of as much as 6.01%. The coin’s price saw several bullish moves even before this major surge, during which the pair gained around 17.80%. In total ATOM price saw a 36.34% growth since June 27.

Of course, Cosmos’ surge likely doesn’t come only because of the announcement. After all, the majority of the crypto market recently saw a considerable price increase, as another bullish wave swept through the crypto market.

Even so, ATOM/BTC trading pair saw rather considerable intraday gains, which is certainly worth mentioning, especially as it comes after a 7-month-long downtrend.

The asset’s chart shows that a Double Bottom indicator has been formed, which is when two consecutive lows form, with a moderate peak between them.

The pair is now struggling with a resistance of 3,310 sats, and if this level gets broken, it will become a new strong support for the token.

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