- ATOM price has come under intense pressure in the past few weeks.
- Cosmos ecosystem is set to see major changes in the coming months.
ATOM price has pulled back in the past few weeks even as the Cosmos system geared for major changes. The coin crashed to a low of $12, which was lower than the September high of $17. Still, this price is about 112% above the lowest level in July of this year. It has a market cap of more than $3.8 billion.
Cosmos gearing for major changes
Cosmos is one of the biggest layer 1 projects in the blockchain industry. It is a leading project that has been used to build some of the most popular applications in the industry. Some of the top apps in the Cosmos ecosystem are Injective Protocol, Cronos, and ThorChain among others.
Developers choose Cosmos for several reasons. For example, it has fast processing speeds, low transaction costs, and apps in its ecosystem use the IBC technology to communicate with each other.
Last month, Cosmos developers made one of the biggest announcements in the ecosystem. They launched the second version of its white paper as it continues to evolve. The new version came since the developers already achieved the objectives that were proposed in the first version. These goals were on the launch of Tendermint, IBC, and SDK.
Find out how to buy Cosmos online.
The new version will see Cosmos focus on interchain security. This will work with the introduction of liquid staking and monetization of shared security. In a report, analysts at Coinbas noted that the revamp will see people earn for participating in the network. It pointed that very little of the revenues of the Cosmos ecosystem went to holders of ATOM.
In addition to liquid staking, Cosmos hopes to create an on-chain market for maximal extractable value. Also, the developers will create a system for coordinated deployment of capital to grow the ecosystem.
Cosmos price prediction
The daily chart shows that the ATOM price staged a strong recovery starting from June of this year when it was trading at $5.6. It then rose and reached a high of $17 in September. As it rose, it formed an ascending channel shown in blue. Recently, it has moved slightly below the lower side of the channel and the 50-day moving averages.
Cosmos has also moved below the 23.6% Fibonacci Retracement level. Therefore, there is a likelihood that the ATOM price will bounce back in the coming days. If this happens, the next reference level to watch will be at $17.
