Cosmos Price Analysis: ATOM Upsides Capped At $7, Will Bulls Flow Back Even After A Security Lapse?


Today’s Cosmos (ATOM) News

Simply put, Cosmos is another reason that differentiates blockchain from other traditional industries. The sphere is never at a steady state. It is always on a thread mill, innovating as new solutions designed to enhance the space filters, benefiting end users always searching for efficiency, speed and cost savings. Tendermint’s Cosmos may at first glance appear complex but beneath it all, the designers’ objective is interoperability and scalability.

Cosmos is building an internet for blockchains while simultaneously fusing staking. Scalability is a huge obstacle in legacy public chains. Ethereum and Bitcoin are particularly bogged down. Despite enhancements, there must be choices. To that end, Cosmos architecture is unique, deviating from traditional blueprints. Introducing independent blockchains called Zones and a central unit, the Hub, Tendermint says Interoperability and scalability will be addressed in a single stroke.

“The zones are powered by Tendermint Core, which provides a high-performance, consistent, secure PBFT-like consensus engine, where strict fork-accountability guarantees hold over the behavior of malicious actors. Tendermint Core’s BFT consensus algorithm is well suited for scaling public proof-of-stake blockchains”

Even so, with Validators confirming transactions, a recent breach threw the network into confusion. In a security disclosure, where elements by-passed penalties for their wrongdoings, Jessy Irwin, Tendermint’s head of security, said this was a lesson. Nonetheless, it wasn’t the first bug to be reported and patched by the for-profit team.

Explaining the vulnerability, Irwin said:

“We’ve gone through seven security audits and we’ve had multiple issues raised and then we’ve also had a pretty active bug bounty program. We’ve invested quite a bit in the past year and a half since I joined the team in creating an environment where people report bugs instead of do nothing about them.”

ATOM/USD Price Analysis

Cosmos ATOM

Chart courtesy of Trading View—Kraken

Listed at Kraken, ATOM is bullish against the USD. Event though there is weakness as prices are still trading inside Apr-19 humongous bear bar, bulls will be back in contention once there is a close above $7.2.

The level marks June 2019 highs and a level of interest considering that buyers’ momentum is slowing down despite BTC rally. In an alt-season, volatility is expected to lift prices above key resistance levels. Now, as prices oscillate within a 60 cents trade range with floors at $5.5 and $6.5, the confirmation of May 30th bull candlestick demands an upsurge complete with high trading volumes preferably exceeding 300k of May 30th.

That will be enough for ATOM to rally towards the first target at $9, reversing losses of April 22 in a bull trend continuation phase reflective of the general market recovery.

On the flip side, losses below $5.5 complete with high participation could see ATOM prices tumble to $3, wiping gains of the last two months. That will retest the low of May 30th that anchors this trade plan.


Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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