- ATOM price has formed an inverted head and shoulders pattern.
- This price surged after Osmosis, a DEX in its ecosystem surged.
ATOM price rebounded to the highest level since September 22nd as Osmosis took off. Cosmos rose to a high of $13.83, which was about 31% from its lowest level this month. Its market cap soared to over $640 million, making it the 21st biggest coin in the world.
Osmosis price surge drives Cosmos
Cosmos is a leading blockchain project that is used by thousands of developers globally. Its ecosystem is growing, with leading projects like Cronos, ThorChain, and Osmosis forming part of its ecosystem.
Osmosis is one of the biggest players in the Cosmos ecosystem. It is an interchain liquidity lab that makes it possible for people to swap, earn, and build applications.
According to its website, Osmosis has a total value locked (TVL) of more than $167 million, which is double that of the entire Cardano’s ecosystem. Osmosis handles over $15 million of transactions every day. It has over 12k weekly users.
Developers have used Osmosis to build several applications. Some of the most popular in its ecosystem are Osmosis DEX, Kado, Mars, Apollo Safe, and Margined, among others.
Learn more about how to buy Cosmos.
Therefore, in most cases, movements in Osmosis and other apps in Cosmos ecosystem tend to have an impact on ATOM. This explains why ATOM price surged on Friday. Osmosis’ OSMO coin jumped by more than 51% in the past 24 hours.
Cosmos price has also done well because of its growing ecosystem and the upcoming changes in its ecosystem. dYdX, one of the biggest players in DeFi, is building its smart contract chain on Cosmos.
Meanwhile, the developers are working on transitioning the platform to focus on liquid staking and other features. Therefore, ATOM has risen as investors anticipate more activity in its ecosystem.
ATOM price prediction
The four-hour chart shows that the Cosmos price has been in a strong bullish trend recently. In this period, it has faced a strong resistance at $13.83. It has also moved slightly above the 25-day and 50-day moving averages.
At the same time, the coin has formed an inverted head and shoulders pattern. In price action analysis, this pattern is usually a bullish sign. The Relative Strength Index (RSI) has continued rising.
Therefore, there is a likelihood that the coin will have a bullish breakout in the near term. If this happens, the next key resistance level to watch will be at $15. A drop below the support at $12.50 will invalidate the bullish view.
