The Cosmos price tilted upwards on Friday as demand for the currency rose. The ATOM token rose to $31.55, which is the highest level it has been since December 3rd. It has risen by about 55% from the lowest level this month.
Why is ATOM rising?
Cosmos is a leading blockchain platform that defines itself as the internet of blockchains. It is an ever-expanding ecosystem of interconnected applications and services that are built for the blockchain technology.
Cosmos houses about 162 applications that have a combined total value locked (TVL) of more than $171 billion. Some of the most popular applications in this ecosystem are Binance Coin, ThorChain, KuCoin Token, and Mirror Protocol among others.
The idea behind Cosmos is relatively simple. In most cases, applications built in different platforms are often difficult to communicate with each other. For example, apps built on Binance Smart Chain can only interact with those built on the chain.
Cosmos uses the Inter-Blockchain Communication (IBC) protocol that facilitates this development. It is the technology that handles transport across various sovereign blockchains. ATOM is the native token for this ecosystem.
The Cosmos price has done well because of the recent rollout of Terra in its ecosystem. Terra, the South Korean platform, has grown to become the second-biggest platform in the world after Ethereum. It has also become the 9th biggest cryptocurrency in the world while TerraUST is the fourth-biggest stablecoin.
Cosmos price prediction
The daily chart shows that the ATOM price has made a steady recover recently. It has jumped from a low of $20 last week to the current $31. It has also moved slightly below the key resistance at $32.70, which was the highest level in May.
The Cosmos price is slightly above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) is pointing higher.
Therefore, the price will likely keep rising as bulls target the key resistance level at $45. This view will be invalidated if the price drops below $20.
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