The Cosmos blockchain was designed to establish communication between distributed ledgers in a decentralized manner. Its white paper was published in 2016 and its creators soon referred to the network as the “Internet of blockchains”.
The primary goal was to establish a platform of interconnected blockchains that are open-source and can help in faster and more efficient transactions across various networks.
The crucial feature that allows communication between two or more systems is interoperability. For instance, emails sent from a Gmail account can communicate with a Hotmail account, or an Android phone can share data with Apple’s iOS, which is a classic example of interoperability.
The Cosmos Hub acts as an intermediary among all independent blockchains created within the Cosmos network. The ATOM coin powers the Cosmos ecosystem of blockchains that are programmed to scale and interoperate with one another.
The Split in Cosmos
Following a decision by the Cosmos community to approve a proposal to reduce ATOM’s inflation rate from 14% to 10%, Cosmos’ founder, Jae Kwon, called for community members to split the blockchain into two. One observer hailed the potential hard fork as a bullish outcome for the investor community.
Proposal 848 received 41.1% support for the inflation reduction from the participating voting power and 31.9% against it. The proposal suggested that ATOM’s double-digit inflation rate represented overpayment by the Hub for security and disincentivized ATOM’s use in decentralized finance.
The approved change is expected to bring down Atom’s annualized staking yield from about 19% to approximately 13.4%. Staking refers to locking coins in a blockchain in return for rewards.
It’s worth noting that a day after the community approved the proposal, the native coin of Cosmos Hub, ATOM, is nursing moderate losses.
Technical Analysis and Prediction of the ATOM Coin Price
The ATOM coin price started rising when the bulls bounced off the bottom of $6.21 and the major resistance level of $8.575. At press time, the bears have pushed the bulls from the immediate resistance level of $12.057.
The support levels for the bulls are at $8.57 and $6.205. However, before that the 50-day EMA, which is at $9.552 will provide some soft cushioning for the bulls. The ATOM coin price prediction will be bearish considering the RSI being in an oversold level and the rejection at the resistance.
Conclusion
Cosmos is a decentralized platform that aims to facilitate faster transactions across networks. Recently, the community reduced ATOM’s inflation rate. The founder called for splitting the blockchain into two. The price prediction remains bearish due to RSI being in oversold level and the rejection at the resistance.
Technical Levels
- Support Levels: $8.57 and $6.205.
- Resistance Levels: $12.057 and $14.495
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/12/17/cosmos-network-bulls-faced-a-strong-rejection-at-the-supply-zone/