The Cosmos price surged to the highest level since September 27 as investors waited for the upcoming upgrade to Cosmos 2.0. ATOM, its native coin, jumped to a high of $14.50, which was about 36% above the lowest level in October. So, is Cosmos a good crypto to buy in November?
Cosmos is one of the biggest smart contract platforms in the world. According to CoinMarketCap, ATOM has a total market cap of over $4.1 billion, making it the 20th biggest coin in the world. Cosmos is best known for being the smart contract network for leading companies like ThorChain, Osmosis, Cronos, and Terra. In the next few weeks, dYdX will launch its chain on the network.
The key catalyst for the ATOM price will be the upcoming move to Cosmos 2.0. This is the biggest project upgrade since the network was founded a few years ago. According to the developers, this upgrade is important since the original goal of the network has already been achieved. This included the launch of the Cosmos Stack which includes Tendermint, IBC, and SDK.
Cosmos 2.0 will introduce new features like the Interchain Scheduler and Interchain Allocator. Scheduler is a cross-chain block space marketplace that generates revenue from cross-chain MEV. This revenue will be used by the Interchain Allocator to fund new Cosmos chains. In addition, it will introduce liquid staking and Cosmos Councils.
Voting for Cosmos 2.0 has already begun. According to Mintscan, the turnout of the votes has been 10.54% of ATOM holders. The quorum will be reached when 50% of the participants vote. Of the 10%, 92% of them have supported the upgrade.
Meanwhile, staking ATOM is highly rewarding. Data shows that there are over 201.52 bonded tokens out of 314.33 million. The staking APR is about 19%, which is higher than that of other coins.
The four-hour chart shows that the ATOM price has been in a strong bullish trend in the past few weeks. As it rose, the coin managed to move above the key resistance at $13.46, which was the highest point on October 6. It has risen above the standard pivot point and is approaching its first resistance
Cosmos has risen above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved to the overbought level. Therefore, Cosmos price will likely keep rising as bulls target the next key resistance level at $16. A drop below the support at $13.50 will invalidate the bearish view.
This post was last modified on Nov 01, 2022, 03:30 GMT 03:30