Cosmos (ATOM) was trading higher on Tuesday, as prices hit a multi-week high earlier in the day.
The ATOM/USD pair on Wednesday rose to its highest level since June 10, as prices fell below the $10 range.
After the Fourth of July celebration, during which the price dropped to $8.14, ATOM reached an intraday high of $9.27.
The price of ATOM has increased significantly over the past several weeks, with the revelation that by September, Cosmos projects will be able to achieve the highest level of security in the ecosystem.
Cosmos enables developers to design app-specific blockchains that are easily interoperable.
Cosmos (ATOM) is on the rise, up 30% this month
ATOM has experienced significant expansion. Since the beginning of July, the token has increased in value by more than 30 percent, and a 42 percent increase since the announcement of its anticipated incorporation into Thorchain.
News this year of Cosmos switching to the Interchain Security Protocol, which significantly improves the security of the Cosmos Hub and the performance of the entire ecosystem, contributed to the apparent acceleration in the price of ATOM.
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ATOM has been trending upward since mid-June, and produced its first high/low on 30 June. It is currently breaking above a short term resistance band.
The daily chart is more bullish than bearish. This is because the Relative Strength Index rating is extremely positive. The RSI was above 50, which indicates a bullish trend during the past few weeks.
After creating a bullish divergence, the RSI climbed above its oversold levels and successfully closed a swing bottom, another positive development.
ATOM total market cap at $2.63 billion on the daily chart | Source: TradingView.com
ATOM ready to break the $10 level
Following the recent rise, ATOM may once again look to cross $10 as bullish pressure builds up. Although the recent trend is rising, after Tuesday’s peak, gains slowed and some investors opted to quit rather than take higher gains.
This concern arose when the price hit a point of resistance at $9.10, which has not been broken for almost four weeks.
Price charts are increasingly suited to market participants. The RSI supported their positive outlook, as it was above 50 and exhibited an uptrend during the past seven days.
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Meanwhile, ATOM price bullish forecast is unlikely to be realized as long as the bitcoin price continues to slide.
The cryptocurrency could be experiencing a relief rally as the price of BTC stabilizes. Nevertheless, altcoins like ATOM could be in dire straits if Bitcoin drops to new lows.
Featured image from Freepik, chart from TradingView.com