The Cosmos ecosystem has seen an explosion of interest in the past year. Projects like Terra (LUNA) have increased its numbers of users and will continue to boost its position in the crypto space as its ecosystem keeps expanding.
Related Reading | Cosmos (ATOM) Jumps 36% WTD: What’s Driving Its Price Rally?
As of press time, Cosmos (ATOM) trades at $32,57 with a 7% profit in the past 24 hours. The cryptocurrency follows the general sentiment in the market, as Bitcoin (BTC), Ethereum (ETH), and other large cryptocurrencies trend to the upside in lower timeframes.
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ATOM with bullish momentum on the daily chart. Source: ATOMUSDT Tradingview
In an official blog post, the team behind Cosmos recently announced the new project to be release as testnets in 2022. The team celebrated Terra, Secret Network, Osmosis, and other projects in the ecosystem and announced others that will be introduce this year. The team said:
Many up-and-coming projects are running testnets and incentivized testnets that will precede their debuts to mainnet this year.
A testnet, as explained by the post, are a widely use tool for internet development. They let developers test upgrades, products, and more before deploying on a mainnet. A test network or testnet simulate that original environment to carry out such test under similar conditions as if they were already deployed.
Developers and users benefit from testnets because it allows the former to discover and fix bugs and issues, improve user experience, and the latter to leverage a clean and battle tested software. The Cosmos ecosystem holds over $100 billion in terms of total value locked, testnets provide an additional layer of development to guarantee its safety and optimal stability. The team said:
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Over the years, Cosmos testnets have proven to be extensively successful in many areas, such as uncovering issues with the consensus engine, state machine, and even the operational setup of validators.
Top Projects To Watch On Cosmos For 2022
Amongst the projects cited by the Cosmos team, there is Archway. This incentivized smart contract platform will provide the ecosystem with CosmWasm integration and enable direct developer reward into the protocol. In that way, developers, users, and early investors will receive a share of the rewards from launching a product.
Archway will launch “Augusta”, its first incentivized testnet in March 2022. Users will have a chance at earning rewards during this tesnet’s different stages.
In addition, Archway will be accompanied by Celestia, Cosmos’ first “modular blockchain network”. This platform will allow developers to deploy their own virtual machines without, according to the post, having to “bootstrapt their own consensus network”. Thus, bringing new dApp possibilities into the ecosystem.
The project is currently on its devnet phase, but once deployed it’ll let applications to maintain a high level of sovereignty and security with a high degree of scalability. Celestia’s public testnet is set to be rollout at some point in Q2, 2022.
Moreover, the Cosmos will see the launch of Tgrade, the “first regulated DeFi platform”, the protocol will operate with a mix between Proof-of-Stake (PoS) and Proof-of-Engagement (PoE). Unlike regular PoS project, Tgrade will reward all of its community via its PoE mechanism.
Related Reading |Terra (LUNA) Holders Approve New Sports Sponsorship Deal
Finally, this ecosystem will see the rollout of Umee with an incentivized testnet for its lending and borrowing platform. However, many more projects will be introduced via tesnets and on the mainnet making this network one to continue to watch on 2022 and beyond.
The host of popular crypto channel Coin Bureau has a bullish outlook for decentralized parallel blockchain network Cosmos (ATOM) in 2022.
In a new video, the analyst known as Guy tells his 1.93 million YouTube subscribers that Cosmos developers are now creating demand drivers that could push ATOM higher this year.
He cites the Vega update in December that introduced new features and major upgrades to the network.
“For what it’s worth, I’m confident that Cosmos will find a way to add value to ATOM both inside and outside of its ecosystem. From where I’m standing, it looks like it’s focused on exactly that, the Vega update for example. I truly believe that 2022 is going to be a big year for Cosmos so long as we don’t enter another crypto winter.”
Cosmos is an ecosystem of parallel blockchains that can communicate in a decentralized manner. The Vega update aims to enhance the performance of the Cosmos Hub and ensures the seamless adoption of future upgrades.
AsATOMcurrently trades for $30.81, Guy identifies a critical price resistance that he says will likely be a determining factor in its price action.
“Cosmos’ announcements, upgrades and developments have taken ATOM on a tear, but it’s only up about 50% since I last covered the project in September.
Besides the general weakness we’ve seen in the crypto market since December, ATOM has tried and failed to claim the $45 mark three times over the last few months. Unfortunately, this means that it’s likely to see a lot of resistance if and when it approaches those levels again…
As far as ATOM’s price potential goes, it’s hard to say. Cosmos is a large-cap cryptocurrency as it is, and this means it will be hard for ATOM to pull more than a 3x or a 4x before the bull market is over.”
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The cryptocurrency market has an interesting way of catching even the most seasoned veterans off guard as each bull and bear market initially shows similarities to previous cycles only to veer off in an unexpected direction and wipe out the fortunes of newly minted crypto millionaires.
This was the case with the weak close of 2021 which completely went against the bullish $100,000 BTC price estimates that crypto analysts and influencers were peddling nonstop.
Currently, Bitcoin price is more than 50% away from its $69,000 all-time high and altcoins have fared worse, with many down more than 60% in the last 2 months. In times like these, traders need to regroup and re-evaluate their investment strategy, rather than just buying every price dip.
Here are five strategies traders can use to survive an unexpected crypto winter and retain as much value in one’s portfolio as possible.
Reduce exposure to highly volatile altcoins
Once a widespread market downturn commences, the first step to take is to reevaluate current positions and reduce exposure to the most volatile assets.
Oftentimes these are new projects that have come out of the trending sectors of the crypto market such as meme coins, NFTs or rebase projects like Wonderland (TIME), because many of the token holders are new to the community and not long term investor like the user bases for more established projects.
$TIME to pack it up. pic.twitter.com/hJI3jB6eU0
— humble defi farmer (@PaikCapital) January 25, 2022
A good way to begin the evaluation process is by looking at a project’s GitHub account to see the level of activity and the number of developers dedicated to building out the protocol.
If there is hardly any development despite flashy marketing gimmicks and big promises, the project may be one an investor should cut when the market begins to lose momentum.
Traders could then put these funds in stablecoins that can be staked to earn yield or buy future market dips.
Dollar-cost averaging
Dollar-cost averaging (DCA) is the process of buying an asset in tranches over time to average out the price paid and account for volatility-induced changes in price.
There’s a reason that bitcoiners have the most aggressive dollar-cost-averaging community.
They correctly identify work and true scarcity, and understand it. It’s hard to rival that force and utility of something that *can’t* be increased in supply.
— Lyn Alden (@LynAldenContact) January 31, 2022
While DCA strategy is a good way to increase exposure to fundamentally sound projects over time, it is usually best to wait until after the dust has settled somewhat and a period of consolidation has commenced.
The focus of dollar-cost averaging should be on projects that have active development, engaged communities and a roadmap that lays out how the project will continue to grow and remain viable in the future.
Staking
Staking is perhaps the simplest way to increase the value of a portfolio long-term and it removes the pressure of obsessing over daily price fluctuations since the staked asset is continuing to accrue tokens.
Most layer-one protocols offer the ability to stake their native token on the network to earn a yield, including Solana, Cardano, Polygon and Avalanche.
Ether holders can also stake their tokens on the beacon chain for Eth2, but it’s important to note that staking rewards will not be able to be claimed until Eth2 is fully launched.
There are many other staking options out there from gaming protocols like Axie Infinity and Illuvium to NFT marketplaces like LooksRare, so once a deep dive has been made and fundamentally sound projects are chosen, staking becomes a matter of setting it and forgetting it.
Find projects with growing ecosystems and perks
Projects that help token holders earn via staking, liquid staking, borrowing and airdrops are also worth considering when the market turns bearish.
Staking is the simplest form of this as the number of tokens increases over time, but other options include token launchpads, NFT marketplaces and protocols known for offering airdrops to community members.
One example of a protocol where early adopters are being rewarded is the Cosmos (ATOM) network and its growing community of projects connected via the Interblockchain Communication Protocol (IBC).
Best site to keep track of @Cosmos Airdrops https://t.co/XzOOIb5TAG
Builders: submit your upcoming airdrop on that site if you want to increase awareness.@CosmosUplink pic.twitter.com/IPoDqZ8ymp
— Cryptocito | YouTuber ⚛️ (@Cryptocito) January 26, 2022
ATOM stakers and those who have engaged with the Osmosis (OSMO) decentralized exchange have been rewarded with a long list of airdrops from projects launching within the ecosystem as a way to help bootstrap activity within their communities.
Invest in yourself
One of the most personally beneficial things an investor can do during a down market is to invest in themselves by learning something new.
Not only will this help investors to avoid the urge to sell and miss out on future gains, but it can also lead to new avenues to build wealth.
Level up and invest in yourself:
– read more books
– work out well more often
– spend time with family and friends
– take a course and learn a new skill
– invest in a hobby to share w/others
You get out of life what you put into it.
Find your values and invest in them.
— Wealthy Tree (@WealthyTree) February 1, 2022
Despite the market downturn, cryptocurrencies continue to advance along the path to mass adoption and the number of jobs in the blockchain sector is only going to increase moving forward.
Whether it’s learning to program in Solidity, experimenting with graphic and digital design to create a new line of NFTs or just doing research to gain a deeper understanding of the various sectors of the market.
Ultimately, the key to surviving a bear market is staying positive and being patient.
Want more information about trading and investing in crypto markets?
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The top US crypto exchange Coinbase is reportedly on the brink of listing tokens based on Ethereum-competitor Solana (SOL).
According to a recent report, the crypto exchange giant will begin allowing withdrawals of coins in the Solana Program Library (SPL), Solana’s smart contract token standard.
If enacted, this would mark the first time Coinbase offers Solana-based coins on its exchange, though it supports SOL and a variety of Ethereum-based tokens and other layer-1 crypto assets such as interoperable blockchain Cosmos (ATOM).
The anonymous sources said that the feature would be implemented in the “near future,” but did not give a specific date.
One source reports that popular Solana-based stablecoin USD Coin (USDC) would be among the digital assets offered by the crypto exchange. No other information about which SPL tokens would be supported was given.
Last year, Coinbase CEO and billionaire Brian Armstrong tweeted that the crypto exchange’s goal is to list every digital asset it’s legally allowed to.
“Reminder about how Coinbase lists assets: our goal is to list every asset where it is legal to do so…
We’re working hard to keep up with the incredible amount of assets being issued, and responding to and interacting with the amazing asset issuers who are doing their own hard work, day and night, to build the future of this industry.”
Solana is exchanging hands at $93.12 at time of writing, a 15% increase from its seven-day low of $82.38.
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The world’s largest digital asset manager has provided a glimpse into which crypto investment products they’re considering offering next.
According to a new announcement, there are 25 crypto assets that Grayscale is considering for new investment products, including altcoins Cosmos (ATOM) and Fantom (FTM).
“‘Assets Under Consideration’ lists some digital assets that are not currently included in a Grayscale investment product, but that have come to our attention as part of our exploration of this sector, and that our team has identified as possible candidates for inclusion in a future investment product.”
Grayscale already has investment products for 24 digital assets, including investment products for top cryptos Bitcoin (BTC) and Ethereum (ETH). The 25 new cryptos under consideration by Grayscale include a diverse batch of big-name projects.
The biggest crypto assets by market cap on Grayscale’s list are smart contract platforms Cosmos and Fantom. Algorand (ALGO) is also under consideration by the crypto investment giant, alongside enterprise solution blockchain VeChain (VET) and play-to-earn blockchain game Axie Infinity (AXS).
Other notable altcoins newly added to Grayscale’s assets under consideration list include metaverse blockchain gaming token Gala (GALA) and virtual world The Sandbox (SAND). Other large-cap cryptos, such as Avalanche (AVAX), Polygon (MATIC) and Terra (LUNA), were already under consideration before the most recent update.
The other new assets under Grayscale’s consideration are Arweave (AR), Bancor (BNT), BitTorrent (BTT), Convex (CVX), Decred (DCR), Elrond (EGLD), Enjin (ENJ), Gelato (GEL), Helium (HNT), Holo (HOT), IOTA (IOTA), Oasis Network (ROSE), Secret (SCRT), Spell (SPELL), Stacks (STX), Universal Market Access (UMA), Yield Guild Games (YGG), and BORA (BORA).
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Bitcoin (BTC) fell close to $34,000 on Jan. 21, which reflects a 50% decline from the $69,000 all-time high made on Nov. 10, 2021. Altcoins also could not buck the trend and faced intense selling pressure, which pulled the total crypto market capitalization to $1.6 trillion, a 46% decline from its November 2021 all-time high near $3 trillion.
It is not only the crypto markets that are facing selling by investors. The S&P 500 has also plummeted 8% year-to-date. However, gold has outperformed and risen about 1.76% during the period, cementing its billing as a safe haven asset.
Crypto market data daily view. Source:Coin360
Several retail traders who purchased Bitcoin near its all-time high are voicing their concerns on social media. However, El Salvador’s President Nayib Bukele does not seem to be worried by the recent fall as he recently announced a purchase of 410 Bitcoin at an average price of roughly $36,585 per coin.
Could Bitcoin and altcoins witness a bounce after the recent carnage? Let’s study the charts of the top-5 cryptocurrencies that may outperform if a relief rally starts.
BTC/USDT
Bitcoin plunged below the $39,600 to $37,332. support zone on Jan. 21, indicating panic selling. The selling continued on Jan. 22 and the price dipped to $34,008.
BTC/USDT daily chart. Source: TradingView
The sharp fall of the past few days has pulled the relative strength index (RSI) near the 20 level, suggesting that the selling may have been overdone in the short term. Usually, such oversold levels are followed by a consolidation or relief rally.
Recovery attempts are likely to face strong resistance in the overhead zone. If the $37,332 to $39,600 zone flips into resistance, it will signal that the sentiment remains negative and traders are selling on rallies.
The bears will then attempt to resume the downtrend and sink the BTC/USDT pair to the major support at $30,000. A break and close above the 20-day exponential moving average ($41,427) will be the first indication that bears may be losing their grip.
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair is trading inside a descending channel pattern. The bears pulled the price below the channel but have not been able to sustain the lower levels. This suggests strong buying by the bulls who have pushed the price back into the channel.
The pair could rise to the 20-EMA where the bears may again pose a stiff challenge. If the price turns down from this resistance and plummets below $34,008, the selling could intensify. Conversely, a break above the 20-EMA could open the doors for a possible rise to the resistance line of the channel.
LUNA/USDT
Terra’s LUNA token has been trading inside a descending channel for the past few days. The price dropped to the support line of the channel on Jan. 22 but the bulls purchased this dip aggressively as seen from the long tail on the day’s candlestick.
LUNA/USDT daily chart. Source: TradingView
The LUNA/USDT pair could attempt a pullback to the moving averages and then to the downtrend line of the channel. If bulls propel the price above the channel, the pair could rise toward $87.90 and later to $93.81.
Contrary to this assumption, if the price turns down from the current level or the moving averages, it will suggest that bears are selling on every minor rally. The pair could then retest the support line of the channel. A break below this support could accelerate the selling.
LUNA/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the relief rally has reached the 20-EMA which is an important level to watch out for. The marginally downsloping 20-EMA and RSI just below the midpoint indicate a minor advantage to bears.
If bulls drive the price above the 20-EMA, the pair could attempt a rally toward the downtrend line of the channel. Alternatively, if the price turns down from the current level, the bears will fancy their chances and strive to pull the pair to the support line of the channel.
ATOM/USDT
Cosmos (ATOM) turned down from the overhead resistance at $40 on Jan. 17 and plummeted to the 200-day simple moving average ($27.57) on Jan. 22.
ATOM/USDT daily chart. Source: TradingView
The ATOM/USDT pair has rebounded sharply off the 200-day SMA, suggesting that bulls are defending this level aggressively. The buyers will now try to push the price to the 20-day EMA ($35.91).
A break and close above this level could indicate that the correction may be over. The pair could then rally to the critical overhead resistance at $44.80.
This positive view will invalidate if the price turns down from the current level or the 20-day EMA and breaks below the 200-day SMA. Such a move could open the door for a possible drop to $20.
ATOM/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows a double top formation, which completed on a break and close below $34. This topping out pattern has a target objective of $23.20 and the pair plunged to an intraday low at $27.31.
The relief rally from the lower levels is facing stiff resistance at the breakdown level at $34. If bulls push and sustain the price above this resistance, the pair could rise to the downtrend line. A break and close above this line will suggest a possible change in trend.
Related:How to pick or analyze altcoins?
ACH/USDT
Alchemy Pay (ACH) aims to bridge the gap between the crypto and fiat world by achieving seamless transactions between the two economies. Its recent partnership with MEXC Global will provide users with several payment options in Japan, Korea, and Indonesia.
Alchemy Pay also teamed up with Algorand and Avalanche to bring direct fiat payment channels such as Visa, Mastercard, PayPal and several local payment channels to their network.
A new partnership with NIUM will help Alchemy Pay lower costs for its clients in the 190+ countries where NIUM operates. NIUM’s licences in financially important regions such as the United Kingdom, Europe, U.S., Singapore, Hong Kong and Australia, will assist Alchemy Pay in penetrating these markets.
The network added support to Dai after a new collaboration with MakerDAO and also announced a partnership with IoTeX (IOTX). The integration enables IOTX to be used for business-to-business (B2B) or customer-to-business (C2B) payments in several parts of the world.
The project’s multiple partnerships have helped it to expand its support to more than 70 countries with 300 payment channels reaching more than 2 million merchants. ACH was also listed on Binance exchange on Jan. 10, making it easier for a larger pool of traders to transact the coin
ACH has been steadily declining since hitting an all-time high in August 2021. This suggests that traders have been booking profits on rallies.
ACH/USDT daily chart. Source: TradingView
THE ACH/USDT pair plunged below the strong support zone at $0.056 to $0.045 on Jan. 21, but a minor positive is that bears could not build upon this advantage. This indicates strong demand at lower levels.
If buyers push the price back above the overhead zone, several aggressive bears who may have sold recently may get trapped. This could result in a short squeeze which may push the pair to the downtrend line of the descending triangle. The bullish momentum could pick up on a break and close above the triangle.
On the other hand, if the price turns down from the overhead zone, it will suggest a change in sentiment from buy on dips to sell on rallies. The bears will then attempt to sink the price below $0.03 and resume the downtrend.
FTM/USDT
Fantom (FTM) broke above the $3.17 overhead resistance on Jan. 16 but could not clear the next hurdle at $3.48. This may have attracted profit-booking by traders, resulting in a sharp pullback.
FTM/USDT daily chart. Source: TradingView
The bears pulled the price below the 50-day SMA ($2.14) on Jan. 22 but could not sink the FTM/USDT pair to the 200-day SMA ($1.57). Strong buying by the bulls has pushed the pair back above the 50-day SMA.
The bulls will now try to push and sustain the price above the 20-day EMA. If they manage to do that, the pair could retest the overhead zone.
Conversely, if the price turns down from the current level or the 20-day EMA, it will suggest that traders are selling on rallies. The bears will then try to pull the pair below the 200-day SMA.
FTM/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the formation of a head-and-shoulders pattern, which had a target objective at $1.70. The pair bounced from $1.77 and has reached the 20-EMA, which is acting as a stiff resistance.
If the price turns down from the current level, the bears will try to resume the downtrend and sink the pair to $1.30. Conversely, if the price rises and sustains above the 20-EMA, the pair could rally to the neckline of the bearish setup and then rise to $3.00.
LEO/USD
UNUS SED LEO (LEO) plunged and closed below the ascending channel pattern on Jan.21 but a minor positive is that bulls bought at lower levels and are attempting to push the price back above the moving averages.
LEO/USD daily chart. Source: TradingView
If they succeed, the LEO/USD pair could retest the overhead resistance at $3.92. A break and close above this level could indicate the resumption of the uptrend. The pair could then rise to the resistance line of the channel.
If bulls thrust the price above the channel, the pair could pick up momentum. This positive view will invalidate if the price turns down from the current level and breaks below $3.37. The pair could then drop to the strong support at the 200-day SMA ($3.19).
LEO/USD 4-hour chart. Source: TradingView
The 4-hour chart shows that bulls repeatedly attempted to push and sustain the price above the overhead resistance at $3.85 but failed. This may have attracted profit-booking, resulting in a decline to the strong support at $3.40.
The sharp rebound off $3.40 indicates aggressive buying at the level. The bulls will now try to push the price to $3.85. If bulls clear the overhead zone between $3.85 to $3.92, the uptrend could resume. This positive view will invalidate on a break and close below $3.40.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
*Disclaimer: ACH is a featured cryptocurrency from one of Cointelegraph’s sponsors, its inclusion did not affect this price analysis.
2021 was a sort of “coming-of-age” for many layer-one (L1) blockchain protocols because the growth of decentralized finance (DeFi) and nonfungible tokens (NFTs) forced users to look for solutions outside of the Ethereum (ETH) network where high fees and network congestion continued to be barriers for many.
Protocols like Fantom (FTM), Avalanche (AVAX) and Cosmos (ATOM) saw their token values rise and ecosystems flourished as 2021 came to a close. Meanwhile, popular projects like Polkadot (DOT) underperformed, comparatively speaking, despite the high expectations many had for the sharded multi-chain protocol.
FTM/USDT vs. AVAX/USDT vs. ATOM/USDT vs. DOT/USDT daily chart. Source: TradingView
Setting aside the specific capability that each protocol offers in terms of transactions per second and time to finality, here are several factors that may have played a role in DOT’s laggard performance when compared to other L1 competitors.
Interoperability is a key factor
One of the major themes of 2021 was cross-chain interoperability between separate blockchain networks, with a bridge to Ethereum being the most important connection to establish due to the fact that a majority of projects currently run on the network.
Protocols like Fantom, Binance Smart Chain, Avalanche and Harmony developed cross-chain bridges and this led to a noticeable bump in their token price, total value locked and on-chain activity.
Despite the fact that Polkadot was specifically designed to offer multi-chain support as a “layer-zero” meta protocol, there was no major release of a bridge that connected Polkadot with Ethereum in 2021 and this left the protocol unloved by crypto traders looking to engage with DeFi and NFTs.
Cosmos, likewise, didn’t see the release of a major bridge that connected its ecosystem with Ethereum, but there were minor integrations like the addition of Ether as a collateral asset on Terra which demonstrated that cross-chain compatibility was possible.
The late launch of parachain auctions
As 2021 came to a close, all of the previously mentioned networks were seeing a healthy amount of activity and cross-protocol interactions while projects on Polkadot were still finalizing their preparations to launch on the mainnet.
This was in part due to the fact that the parachain auctions for Polkadot didn’t begin until November 11 when Moonbeam (GLMR), an Ethereum-compatible smart contract parachain, secured the first slot.
DOT saw its price rise to an all-time high of $55 on Nov. 4 as those interested in contributing to the parachain auctions secured their tokens, but by the time the auctions had officially started its price was already on the downslope toward a low of $23.28 on Jan. 10.
Moonbeam official went live on the Polkadot network on Jan. 11 and has managed to rack up more than 1 million transactions as users were finally able to transfer ERC-20 tokens into the Polkadot ecosystem.
⚡ ONE MILLION TRANSACTIONS ⚡️
Moonbeam hits 1M tx on the network! Moonbeam is lighting up @Polkadot’s ecosystem with new integrations, 100k+ wallets, 700+ ERC-20 tokens & 1M GLMR tokens locked with collators.
See the networkhttps://t.co/6ZhRLYDHgX pic.twitter.com/tczI7mAjlR
— Moonbeam Network (@MoonbeamNetwork) January 20, 2022
The price of DOT saw a slight bump higher following the launch of Moonbeam but has once again slid back down below $25.
Related:Moonbeam (GLMR) launch brings EVM interoperability closer to the Polkadot network
The benefits of holding DOT
A third factor that may be weighing on the popularity and price of DOT is confusion about what the token is used for and what benefits it provides to token holders.
Thinking about selling my $DOT. I don’t see the purpose of the project anymore, many of the cool projects that were going to build on it migrated to $MATIC or so.
Why should I keep it?
— Quinten François (@QuintenFrancois) July 29, 2021
On many of the competing networks, the native token is used to conduct contract actions such as token transfers or swaps whereas protocols that are in the Polkadot ecosystem use their native tokens to pay for gas.
Aside from being used to participate in parachain auctions, the main uses for DOT include staking to support the operation and security of the network and for use in governance votes.
While governance abilities are important for the overall health of blockchain protocols, the average cryptocurrency users still haven’t shown much enthusiasm for participating in votes and are more interested in things like gaming, DeFi and NFTs.
Multiple layer-one solutions are launching developer and liquidity incentive programs and up and coming DeFi protocols are still offering high yield staking opportunities. Currently DOT offers 13.94% APR to stakers and its possibly that this is not enough to satisfy the appetite of yield farmers who are looking to get more bang for their buck.
The long-term outlook for Polkadot remains strong and the project has an active and dedicated community of followers to go along with an experienced development team led by Ethereum co-founder Dr. Gavin Wood.
The launch of Moonbeam might indeed mark a turning point for DOT as cross-chain compatibility is now live and other parachain projects should start to launch on the mainnet shortly, but it remains to be seen how long it will take the network to catch up to its L1 competitors who have a head start on cross-chain interactions and increased on-chain activity.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Bitcoin (BTC) has stopped its decline and is attempting a recovery along with select altcoins. Some traders have been fearing a massive sell-off in Bitcoin but Capriole CEO Charles Edwards said that Bitcoin’s worst crashes have happened “due to miner capitulation (December 2018 and March 2020), when BTC fell below production costs.” However, the current production cost of Bitcoin was $34,000, which is well below the current price.
In a sign that institutional investors remain bullish on the crypto sector even after the recent fall, Cathie Wood’s Ark Invest bought 6.93 million shares of the special purchase acquisition company that will merge with Circle, the principal operator of USD Coin (USDC) and the second-largest stablecoin in terms of market capitalization.
Crypto market data daily view. Source:Coin360
Another sign that the crypto markets are maturing is the fact that nonfungible tokens (NFTs) have not responded negatively to the fall in crypto prices. A recent report by DappRadar said that NFT trading in the first ten days of 2022 generated $11.90 billion compared to $10.7 billion in Q3 2021.
Could Bitcoin continue its recovery and pull select altcoins higher? Let’s study the charts of the top-5 cryptocurrencies to find out.
BTC/USDT
The bulls are struggling to propel Bitcoin above the 20-day exponential moving average ($44,415) for the past few days but a minor positive is that buyers have not given up much ground. This suggests that bulls are buying on every minor dip.
BTC/USDT daily chart. Source: TradingView
If buyers push and sustain the price above the 20-day EMA, it will signal a possible change in trend. The BTC/USDT pair could then rally to the 50-day simple moving average ($47,987) where the bears may again mount a stiff resistance. A break and close above this resistance could clear the path for a rally to $52,088.
Contrary to this assumption, if the price fails to rise above the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then attempt to sink the price below the critical support at $39,600. If they succeed, the pair could extend its downtrend.
BTC/USDT 4-hour chart. Source: TradingView
The moving averages have flattened out and the relative strength index (RSI) is just above the midpoint on the 4-hour chart. This suggests a range-bound action in the short term. The pair could remain stuck between $39,600 and $45,456.
A break and close above $45,456 could tilt the advantage in favor of the bulls, signaling the start of a possible rally to $52,088. Alternatively, a break and close below $39,600 could indicate the resumption of the downtrend.
NEAR/USDT
NEAR Protocol’s NEAR token is in a strong uptrend. The price broke above the previous all-time high at $17.95 on Jan. 11, signaling the resumption of the up-move. The bears pulled the price back below $17.95 on Jan. 12 but the bulls bought this dip and reclaimed the level on Jan. 13.
NEAR/USDT daily chart. Source: TradingView
Both moving averages are sloping up and the RSI is in the positive territory, indicating that the path of least resistance is to the upside. If bulls do not allow the price to dip below the breakout level at $17.95, the NEAR/USDT pair could rally to $25.44.
Alternatively, if bears pull the price below $17.95, the pair could drop to the 20-day EMA ($16.42). A bounce off this level could keep the uptrend intact but a break and close below it will suggest that traders are rushing to the exit. The pair could then decline to $13.
NEAR/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price has been taking support at the 20-EMA. The upsloping moving averages and the RSI in the positive territory indicate that the short-term trend favors the buyers.
If bulls propel the price above $20.59, the uptrend could begin. The pair could then rise to $22 and later to $25.
Contrary to this assumption, if the price drops below the 20-EMA, it will indicate that short-term traders may be booking profits. The pair could then drop to the 50-SMA. A break and close below this support will indicate the start of a deeper correction.
ATOM/USDT
Cosmos (ATOM) is attempting to form an inverse head and shoulders pattern, which will complete on a breakout and close above the overhead resistance at $44.80.
ATOM/USDT daily chart. Source: TradingView
The rising moving averages and the RSI in the overbought territory indicate that the path of least resistance is to the upside. A close above $44.80 could open the gates for a rally to the psychological level at $50 and then toward the pattern target at $69.42.
Alternatively, if the price turns down from the overhead resistance, the ATOM/USDT pair could drop to the 20-day EMA ($36). This is a key level for the bulls to defend. If the price rebounds off this level, the bulls will again attempt to drive the pair above the overhead resistance and resume the uptrend.
A break and close below the 20-day EMA will be the first sign that the up-move could be losing steam. The pair could then drop to $32.90.
ATOM/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price has broken out of the symmetrical triangle pattern, indicating that the uncertainty has resolved in favor of the buyers. The bears may attempt to defend the overhead resistance at $44.80 but if they fail, the pair could rally to the pattern target at $51.19.
Alternatively, if the bears successfully defend the resistance at $44.80, the pair could drop to the 20-EMA. If the price rebounds off this support, the bulls will again try to clear the overhead hurdle. This positive view will be negated on a break and close below the 50-SMA.
Related:Dogecoin leaps 25% after Musk announces DOGE payments for Tesla merch
FTM/USDT
Fantom (FTM) is in a strong uptrend. The price action of the past few days has formed an inverse (IH&S) which will complete on a break and close above $3.17.
FTM/USDT daily chart. Source: TradingView
The bears may attempt to stall the rally at $3.48 but if bulls push the price above this level, the next leg of the uptrend could begin. The up-move could first reach $4 and later continue its journey toward the pattern target at $5.11.
Contrary to this assumption, if the price turns down from the overhead resistance, the bears will attempt to pull the FTM/USDT pair to the 20-day EMA ($2.62). If the price turns up from this level, it will suggest that the sentiment remains positive and traders are buying the dips.
However, a break and close below this support will signal the start of a deeper correction to the 50-day SMA ($2.07).
FTM/USDT 4-hour chart. Source: TradingView
The bears attempted to stall the up-move at $3.17 but the bulls had other plans. They bought the dip to the 20-EMA and have pushed the price above the overhead barrier. If bulls sustain the price above the breakout level, it will signal the resumption of the uptrend.
On the other hand, if bears pull the price below $3.17, the pair could drop to the 20-EMA. This is an important level to watch out for because a break and close below it could indicate that the current breakout may have been a bull trap. The pair could then drop to $2.80 and later to the 50-SMA.
FTT/USDT
FTX Token (FTT) has been in a strong corrective phase for the past several weeks. The bulls pushed the price above the downtrend line on Jan. 14, signaling a possible change in trend.
FTT/USDT daily chart. Source: TradingView
The moving averages are on the verge of a bullish crossover and the RSI has risen above 64 after forming a positive divergence. This suggests that bulls are attempting a comeback. If the price sustains above the downtrend line, the FTT/USDT pair could rise to $53.50.
Contrary to this assumption, if the price turns down from the current level and breaks below the moving averages, it will suggest that the breakout was a bull trap. That could pull the price down to $33.76. A break and close below this support could open the doors for a possible drop to $24.
FTT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the formation of a falling wedge pattern. The buyers pushed the price above this pattern and have also cleared the horizontal resistance at $45.07.
Both moving averages are sloping up and the RSI is in the overbought zone, indicating that bulls have the upper hand. If bulls maintain the price above $45.07, the pair could start its march toward the psychological resistance at $50.
This positive view will invalidate if the price turns down and re-enters the wedge. Such a move will indicate that demand dries up at higher levels.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Crypto assets within the Cosmos ecosystem have been on a run since the start of 2022 thanks to an intensified focus on brokering cross-chain compatibility with other blockchains. One decentralized finance (DeFi) protocol that has benefited from the current expansion plans is Osmosis (OSMO).
Osmosis is the first decentralized exchange (DEX) servicing projects connected through the Interblockchain Communication Protocol (IBC) and data from Cointelegraph Markets Pro show OSMO price surged 123% from a low of $4.05 on Dec. 17 to a new all-time high at $9.24 on Jan. 7.
OSMO/USD 1-day chart. Source: CoinGecko
Three reasons for the price growth seen in OSMO include a surge in trading volume on the DEX, a record high in the total value locked on the protocol and the release of cross-chain bridges that connect the Cosmos (ATOM) ecosystem with other Ethereum (ETH) virtual machine (EVM) compatible networks.
Trading volume surges
One of the biggest factors helping drive the price of OSMO has been the significant increase in trading volume on the exchange. According to data from Token Terminal, trading volume hit a record high of $186.8 million on Jan. 7 and a new all-time high was set on the same day.
OSMO price vs. DEX trading volume. Source Token Terminal
The spike in trading volume and token price briefly resulted in Osmosis becoming the third ranked DEX by market capitalization as highlighted in the following tweet from Twitter user Jimmy Yang.
3rd largest DEX token is a @Cosmos DEX $OSMO $ATOM pic.twitter.com/UbBNur2Dsr
— Jim Yang is hiring (@proofstake) January 6, 2022
Other factors that have helped bolster the price of OSMO as trading volume increased include the fact that more than 81 million OSMO are currently staked on the network according to data from SmartStake. Furthermore, a large portion of the supply is also being used to provide liquidity in the various liquidity pools offered on Osmosis.
Total value locked on the rise
A second development laying out the bullish case for OSMO has been the steady increase in total value locked on the protocol, which hit a record $1.21 billion on Jan. 11 according to data from Defi Llama.
Total value locked on Osmosis. Source: Defi Llama
The climbing TVL comes as multiple tokens in the Cosmos ecosystem hit new highs. Notably, ATOM, which is the most recognizable asset from Cosmos, hit a daily high of $43.64 on Jan. 7, which is just a dollar below its all-time high. Osmosis’ second native token, ION, also hit a new high at $16,500 on Jan. 11.
Related:3 reasons why Cosmos (ATOM) price is near a new all-time high
Cross-chain ease the burden for traders
A third reason for the bullish turn in OSMO is the increased attention Cosmos has directed toward EVM compatibility and cross-chain bridges.
Evmos is a current project in development that is working on becoming the first IBC-compatible EVM-based chain and it is currently supporting ERC-20 tokens on its testnet.
IBC-enabled ERC20 tokens
Now live on @EvmosOrg’s incentivized testnet!#IBCGang @cosmosibc @cosmos https://t.co/0knQk4gf9G
— Federico Kunze Küllmer (@fekunze) December 22, 2021
Injective, a L1 protocol, has also revealed that is developing cross-chain bridges for Cosmos-based projects and it is currently working on support for OSMO.
Sneak peek at the latest Injective Bridge IBC integration @osmosiszone ⚛️ @InjectiveLabs
The @cosmos IBC ecosystem is growing stronger everyday! pic.twitter.com/rVoRdQxjh0
— Injective (@InjectiveLabs) January 4, 2022
As cross-chain bridges come online and allow tokens from other EVM-compatible networks to bridge into the Cosmos Hub, Osmosis has the potential to see further increases in trading volume and TVL simply because it is the main DEX for the Cosmos ecosystem at this time. If this were to occur, there’s also the possibility that OSMO price could appreciate further.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
