Check out ATOM insights on 20251120 14:00 UTC
Long Article:
ATOM has recently experienced a significant upward movement in prices, driven by optimistic technical expectations and notable developments in the ecosystem.
1. Price Increase: The price of ATOM rose by about 9% over 24 hours, supported by strong and optimistic technical indicators.
2. Ecosystem Growth: A fundamental benefit enhanced by new security features and expansion among chains.
3. Market warning: Governance concerns and recent selling pressure indicate potential short-term risks.
Positives
1. Fundamental: The "Partial Security Solution" (PSS) and "Network Security" enhance the fundamental value of ATOM, potentially increasing demand with the possibility of "leasing" security from the ATOM center.
2. Price momentum: The price of ATOM jumped by about 8.87% in the last 24 hours, with the upward EMA alignment signaling a strong bullish trend.
3. Ecosystem expansion: Cosmos is positioned as the "Internet of Blockchains" through the Inter-Blockchain Communication (IBC) protocol, enhancing an interconnected ecosystem with major projects built using the Cosmos development suite.
Risks
1. Governance concerns: A Cosmos network auditor criticized Cosmos Labs' strategic decisions, pointing to concerns about "private chain" paths and the potential damage to the ecosystem's reputation and the interests of ATOM holders.
2. Weak momentum: The MACD indicator chart shows a decline in positive values, and the RSI has significantly dropped over 6 periods from overbought levels, indicating a short-term loss of upward momentum.
3. Selling pressure: The token has experienced a continuous negative net flow and significant outflows over the past few hours, indicating a notable increase in selling pressure.
Community direction
1. Mixed sentiments: The community reflects mixed sentiments, with many posts expressing bullish trading calls to buy ATOM, often referencing macroeconomic events, along with discussions about the token's underlying infrastructure and recent price surges.
