Cosmos (ATOM) price corrects to enter a ‘Buy’ zone

By: Michael Harris
Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to… read more.
on Jan 23, 2021
  • A new product that aims to connect Ethereum and Cosmos is launched
  • ATOM price gained over 11% yesterday and today it has been trading around 3% higher as well
  • The next next resistance line is located around $10.50

Cosmos (ATOM) price has rallied over 7% today to recover a portion of losses after plunging about 35% from the highs.

Fundamental analysis: Gravity Bridge announced 

Decentralized mesh Internet network Althea Network announced “Gravity Bridge”, a new product that aims to connect Ethereum and Cosmos.

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“Backed by billions of dollars of Atoms staked, the Gravity Bridge is the most secure, efficient, and decentralized cross-chain bridge to ETH,” Althea said.

Cross-chain bridges represent an essential part of the more sophisticated blockchain ecosystems, which are more advanced than previous blockchains that faced certain issues related to scalability, speed, and muted growth.

In other words, these cross-chain products enable blockchains to transfer value and assets with each other. Cosmos is one of the blockchains that has been created with such limitations and advantages. It represents a decentralized network of individual parallel blockchains, backed by consensus algorithms.

Gravity Bridge is a new product that will help Cosmos port it to Ethereum. In the statement, Althea said Gravity Bridge is an evolved version of the Peggy bridge, which has been developed in collaboration with the Interchain Foundation.

After Gravity is integrated onto the Cosmos Hub, Cosmos’ validators will be able to directly engage in the operation of the Gravity bridge. Gravity is now the safest bridge Ethereum as it has been supported by billions of dollars in staked ATOM. 

“Gravity will be able to bring ERC20 assets from Ethereum into Cosmos, but it will also be able to bring Cosmos assets to Ethereum,” said the official blog post.

Technical analysis: ATOM price recovers

ATOM price gained over 11% yesterday and today it has been trading around 3% higher as well. Buyers are now working to erase a portion of losses they incurred over the course of the last week.

ATOM daily chart (TradingView)

During this pullback, the price action rotated lower to retest the previous resistance around the $7.00 handle. ATOM buyers were quick to use this opportunity and get on the long side. The next resistance line is located around $10.50.

Summary

Althea Network has announced a new cross-chain bridge named Gravity Bridge, which will connect Ethereum and Cosmos. In the meantime, ATOM price is trading in a volatile manner as buyers attempt to push for new highs.

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