Universe [ATOM] it has hit its highest price point since trading at $15.70 on May 8. Dubbed as the “economy of the future”, ATOM had kept its investors wondering if they had any glimmer of hope as it was far from its all-time high (ATH) of $44.45. However, the recent situation seems to calm the storm.
At press time, ATOM was up 24.12% in the last 24 hours while trading at $15.79. Interestingly, there has also been an increase in the size of the Cosmos ecosystem. Per CoinMarketCap, up 87% from the previous day. But the concern is whether ATOM is really operating independently or following the latest crypto market rally led by Bitcoin [BTC].
Taking a look at the metrics on the chain, it was was observed that ATOM positive and negative sentiment were almost at the same level. In fact, there was only a small difference of 0.182 as positive sentiment was at 9.519.
As for the negative sentiment, it stood at 9.409 according to Santiment.
Additionally, not much has happened in the NFT ecosystem either. However, recently there has been a noticeable increase. Sentiment revealed that the total NFT volume on Cosmos rose to $774,000 on September 7th.
The unique addresses that bought these NFTs also increased to five. However, the surprising part is that both metrics were down in the wake of ATOM’s rally. While total NFT volume was down to $221,000, unique addresses at press time were only two.
According to its development activity, ATOM was object increasing numbers following the proposall to update its blockchain. But will this recent rally be unstoppable for a while or is it unlucky?
Reject for what?
According to the four-hour chart of ATOM/USDT, the crypto may be able to maintain the green in the short term. This claim was proven by the exponential moving average (EMA). The 20 EMA (blue) was above the 50 EMA (red). Despite the rise, the 50 EMA seemed to be in pursuit.
In terms of the longer-term view, the 200 EMA (blue) revealed that ATOM could retreat to new lows in the coming months, as it was nowhere near the short-term indicators. Additionally, ATOM investors may need to watch out for volatility.
Based on the reflection from the Bollinger Bands (BB), the rise in ATOM price was followed by extremely high volatility. So waiting for a recession in no time may be an option if investors were going to play it safe.