Over the past few days, Cosmos Hub (ATOM) has shown remarkable strength and resilience in its price swings, despite significant downturns in the broader cryptocurrency markets due to changes in the traders’ sentiment. For three straight days, the ATOM bulls managed to rebound and hold the native token’s price up, despite Bitcoin’s bearish momentum sending most altcoins tumbling.
The renewed strength and price stability of Cosmos (ATOM) in the crypto markets can be linked to the new updates announced by the team behind the project.
Adoption grows for Cosmos’ replicated security model
In an exciting update, the Cosmos team announcement yesterday that its first replicated security model went live and was adopted by a leading smart contract and consumer chain platform.
Replicated security unlocks a new era of utility for #ATOM ⚛️
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) May 11, 2023
Prior to this, the team had communicated in February that the launch of the replicated security model was near and presented an opportunity for delegators and validators to earn multiple tokens from upcoming consumer chains by staking the native token ATOM.
The Cosmos Replicated security model, a new and secure innovation, provides security for smart contracts and consumer chain platforms. The team announced and introduced Neutron as the First of all consumer chain and smart contract platform to adopt and leverage its innovative new replicated security model.
By leveraging Cosmos’ replicated security model, smart contracts and consumer blockchain platforms like Neutron no longer care about platform security, but can now focus on other areas of application and services, according to the official announcement.
As seen in an official tweet where the team made the announcement, it was also stated that the replicated security model ushers in a new era and a new era of usefulness, as dApps can now be launched with the native ATOM security.
This fundamental news from the Cosmos team could be behind ATOM’s recent show of strength and price resilience despite the bearish market outlook seen in several cryptocurrencies.
Daily chart analysis for ATOM
Cosmos (ATOM) is trading at $11.04, up 2.02% from its 24-hour low at $10.55, as seen in Coingecko trading data reports. ATOM’s market capitalization is also expected to increase by 1.10%.
On the daily timeframe, the bulls pushed ATOM’s price above key resistance at $10.90 and moved to a high of $11.27 before pulling back.
The previous resistance turned into a support level on the daily price chart is a good area for bulls to build momentum and push ATOM price higher. Although the 50 and 200 exponential moving averages (EMAs) are an immediate resistance level, bulls must face them to confirm further upward moves.
On the downside, a break above the new support at $10.90 will signal further bearish moves for the asset.
Cosmos (ATOM) price seen to trade at newfound support after breaking the resistance level on the daily timeframe | Source: ATOMUSD on TradingView.com
Featured image from Forkast News, chart from TradingView.com