Cosmos price has staged a strong comeback in the past few days as demand for the coin bounces back. ATOM surged to a high of $17.08, which was the highest level since May of this year. It has surged by more than 190% from the lowest level this year, giving it a market cap of more than $986 million.
Why is Cosmos surging?
Cosmos is a leading blockchain project that hopes to change how the industry works. It is an ever-expanding platform of interconnected blockchains that are built using developer-friendly application components. These apps are connected using a technology known as the Inter-Blockchain Communication (IBC) protocol.
Cosmos also has an SDK platform that makes it possible for developers to build quality decentralized applications (dApps). Some of the top applications in the Cosmos ecosystem are Terra, Thorchain, Osmosis, and Cronos. Other developers like MM Finance and VVS Finance have built on top of Cosmos ecosystem.
Cosmos price has made a strong recovery in the past few days for several reasons. First, it has risen as cryptocurrencies in the Terra ecosystem like USTC, Anchor Protocol, and Mirror Protocol rebound. Still, it is not clear whether this rally will last since some analysts believe that it is a pump and dump scheme.
Second, there are hopes that more developers will embrace the network after the upcoming Ethereum merge. Indeed, some developers like dYdX have announced that they will build their independent chains on Cosmos instead of Ethereum.
Third, ATOM price has rallied as other cryptocurrency prices rebound. Bitcoin has moved above $20,000 while the total market of cryptocurrencies have risen to over $1 trillion. Finally, Cosmos has exciting returns. According to Staking Rewards, CosmosHub has a yield of over 17%.
Cosmos price prediction
The daily chart shows that ATOM price has been in a strong bullish trend in the past few weeks. Along the way, the coin jumped above the 25-day and 50-day moving averages while the MACD has moved above the neutral level.
The coin has formed an ascending channel that is shown in green. It is now along the upper side of this channel and the 23.6% Fibonacci Retracement level. Therefore, the coin will likely continue rising as bulls target the next key resistance at $20, which is about 27% from the current level.