Decode ATOM’s strong resistance despite this pending Cosmos rejection

Cosmos [ATOM] Co-author Jae Kwon’s suggestion to develop a “constitution” may not lead to a positive outcome for the founder. On October 31, Kwon was Suggestion The interchain center for enhancing the security of the Blockchain Internet ecosystem. Under the proposal, the Cosmos Hub will provide the much-needed check and balance financial position for Cosmos.

over here Predict AMBCrypto prices for Cosmos [ATOM] For the year 2023-2034

While Kwon thought he was carrying a message of goodwill, the Cosmos community seemed to think otherwise. This was because polling at press time showed that over 85% of voters rejected the proposal. Looking at Mintscan, the Cosmos-based block explorer, 54 million of the 202 million community members voted.

Source: Mintscan

A force to be reckoned with

Despite the rejection, ATOM failed to follow a downtrend. According to CoinMarketCap, the value of ATOM increased by 7.09% between November 3 and 4. While the increase may be a good development for investors, the volume showed that the same investors were not committed to seeing a long-term rally. This was due to the 14.67% volume. a plus It may not be enough to maintain the current high. On November 4, ATOM had a volume of 367.9 million based on Santiment data.

ATOM price and size

Source: feeling

However, it should be noted that the reaction of ATOM differed from the other proposals. For ATOM “Zero Constitution” this was roughly sure to refuse, ATOM’s price has fallen for most of the period. In addition, ATOM had a similar response to the suggestion Validation Incentives When it was traded with an increase in price of 11%. Against this background, it may be necessary to assess price action.

According to the 4-hour chart, ATOM gained excellent buying momentum against the US Dollar (USD). On November 4, the Relative Strength Index (RSI) at 67.01 indicated massive purchasing power. However, approaching the overbought RSI at 70 or more is likely to reverse ATOM’s price direction.

Directional Moving Average (DMI) indicators showed that ATOM’s ability to hold green was low. Although the buyers (in green) positioned themselves above the sellers (in red), the yellow ADX did not support a strong movement in the charts.

ATOM four hour price action chart

Source: TradingView

This is what society and development said

In terms of development activity and social dominance, the contrast was clear. According to Santiment, evolution has increased in the Cosmos ecosystem. With a value of 59.88, the Cosmos team was sure to incorporate upgrades to the network.

As for social domination, it was a case of decline of interests in cryptocurrency. The sentiment data showed that ATOM, at 0.283%, was nowhere near the top of the search discussions on social media. Finally, the proposal discussed above was relatively in an early stage. And with the shutdown vote on November 14, that could still change.

Atom social domination and development activity

Source: feeling

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