Cosmos (ATOM) is the biggest mover in the crypto space over the past week amid growing optimism. Let’s analyze the key reasons.
Key Drivers
The Bitcoin rally that fired up the crypto space over the course of the first six months of the year may have slowed down considerably, but there are many other tokens that are making rapid gains in the market. One of those cryptocurrencies that has been making impressive gains over recent days is Cosmos (ATOM).
The token has had a superb week and rallied by as much as 55% when compared to its previous week’s performance.
Today, the cryptocurrency added another 12% to its market price and while there might be a lot of optimism due to the recent price action, there are other factors that need to be taken into consideration as well.
Analysts believe that while it is true that ATOM has made impressive gains recently, the selling pressure is also eating away at whatever gains the token is making. In other words, without the considerable selling pressure, the gains could have gone much higher, and there lies the possibility of a large selloff that could eventually dent the price considerably. During the period in which ATOM continued to rise, many other altcoins in the crypto sphere either recorded losses or remained flat. It remains to be seen whether the coin can manage to hold on to the gains or rise further in the coming days.
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The Cosmos project got the blessing of Binance at the time of its listing and the ATOM token listed without having to pay anything to the exchange. That being said, much of the trading that is currently leading to the appreciation in the price of the token is going in other exchanges.
The two exchanges that have been particularly active in ATOM trades have been Bibox and Hotbit. Plenty of Cosmos bears believe that the coin is overpriced and continue to highlight the risks of holding on in expectation of higher prices.
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