Cosmos (ATOM) Extends Rally with Growing Risks
Cosmos (ATOM) broke above its sliding trend on news of its upcoming listing on Binance.US, but the new price starts to look shakier.
Cosmos (ATOM) added another 15% to its market price, breaking to $3.03, and is up more than 52% week-on-week. But prices are starting to look shakier, with selling eating away at the new gains. Traders are making comments that for ATOM, it’s “bag-selling time”.
ATOM is one of the assets that rallied while other altcoins sank or remained stagnant. Along with ChainLink (LINK), the asset got a boost from its Binance listing. The Cosmos project is seen as highly promising, gaining a free Binance listing based on its technology and team.
But currently, most ATOM trading has moved away from Binance, unlike LINK. The current price pump is happening based on activity on the Hotbit and Bibox exchanges, showing the importance of new markets for altcoin appreciation. Still, the share of Binance is important for the pairing with Tether (USDT), which is adding liquidity to ATOM.
Now, talks of a potential Coinbase listing may be boosting the price, along with a concerted price pump. Skeptical traders, however, see ATOM as once again overpriced:
ATOM is also displaced from the top 20 of coins, and is still quite far from its price peaks above $7. ATOM has managed to double its price in less than a month, but the coin is also volatile. ATOM managed to erase the rally achieved in May and June, and there are little hopes the coin would regain its valuation against BTC, which once touched a peak at 0.002 BTC.
Now, it remains to be seen if the recent rally is sustainable, or just a fluke. The Coinbase listing may already be discounted, and the actual start of trading may lead to falling prices.
The ATOM rally marks a day when even older altcoins seem to be reawakening, attempting to recover prices after BTC stabilized around $10,000.