- Cosmos price has had a strong performance in the past few days.
- The community members voted to reduce inflation in its ecosystem.
- The token has formed a small double-top pattern on the daily chart.
Cosmos ATOM price had a strong performance during the weekend after a major development in the ecosystem. The price jumped to a high of $10.17 on Sunday and then pulled back slightly to $9.6. It has risen by over 56% from the lowest point this year, giving it a market cap of over $3.6 billion.
ATOM inflation vote
Cosmos is one of the biggest blockchains in the world. It pioneered a technology known as Inter-Blockchain Communication Protocol (IBC), which allow heterogeneous chains to communicate with each other. By so doing, they can exchange data, messages, and tokens.
Cosmos has also built an SDK, a smart contract platform that enables developers to build applications in industries like decentralized finance (DeFi) and gaming. Some of the top players in its ecosystem are Kava, ThorChain, Akash Network, and BluZelle.
THORChain, the biggest DEX in its ecosystem, has done well this year as its market share has jumped. According to CoinMarketCap, THORchain handled volume of over $102 million in the past 24 hours, making it the 8th biggest player in the industry.
Read more: How to buy Cosmos.
Cosmos ATOM price has done well after the community voted to reduce the maximum inflation rate from 14% to 10%. According to its website, the proposal narrowly passed with about 41.1% voting in favor and 38.5% against it. This was the highest-ever turnout rate.
The goal of the vote was to reduce the payments made to validators, which the governing body argued was an overpayment. They also argued that these validators would still make a profit with the new inflation rate. In a note, one of the biggest voters for the proposal said:
“Double digit inflation is not necessary for security, weakens Atom price long term, and disincentivizes use of ATOM n DeFi and elsewhere in the Atom Economic Zone.”
Cosmos ATOM price forecast
Turning to the daily chart, we see that the ATOM price has done well this year. It bottomed at $6.13 between October and November. Along the way, the token has soared above the descending trendline that connects the highest swings since February.
Cosmos price has jumped above the 50-day and 25-day moving averages. A closer look shows that the token is about to form a small double-top pattern, which is usually a bearish sign.
Therefore, the outlook for the Cosmos ATOM price is neutral with a bearish bias. If this happens, the next price to watch will be the neckline at $8.10. A move above the double-top point at $10.17 will invalidate the bearish view and point to more upside. If this happens, the next point to watch will be at $13.
