On Wednesday, ATOM, the native token of the Cosmos network, experienced a notable rise of 4% following the announcement that Cosmos executives would halt development on their Ethereum Virtual Machine (EVM) to focus on enhancing blockchain interoperability through their own Inter-Blockchain Communication (IBC) protocol. This strategic maneuver is perceived positively by investors, as it solidifies Cosmos’ position as a self-sufficient blockchain equipped with proprietary technology stacks.
The broader cryptocurrency market also showed signs of recovery on the same day, as speculation grows that investors are positioning themselves for a long-awaited ‘altcoin season,’ with various indicators pointing towards a shift in capital from Bitcoin (BTC) to altcoins, including ATOM.
Technical Breakout Signals Bullish Reversal
- ATOM-USD saw a remarkable surge of 4% in 24-hour trading, moving from 16:00 on July 15 to 15:00 on July 16, breaking through the resistance level at $4.69 to reach highs of $4.71.
- The token demonstrated a strong rebound, bouncing sharply from the support level at $4.55, showcasing a notable $0.17 trading range, which indicates significant volatility compared to previous sessions.
- Trading volume increased beyond daily averages during the pivotal moments of reversal at $4.55 and breakout at $4.69, illustrating increased institutional buying activity at these critical technical points.
- Intra-day performance between 14:33 to 15:32 on July 16 displayed continued momentum, with price fluctuations within a $0.05 range between the support and resistance levels of $4.66 and $4.71 respectively.
- At 14:45, ATOM broke through the higher resistance, reaching session peaks close to 15:04 on volume exceeding 66,000 units before entering a consolidation phase around $4.69.
- The sustained hourly gain of 1% contributes to the ongoing 24-hour rally, with the price maintaining above the $4.66 support level, signaling persistent institutional accumulation.
Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
