I continue to make my participate with Team-REMINANE. I will be handling ATOM/USDT this time and with a detailed overview and trading analysis.
OVERVIEW OF ATOM
There are several crypto coins in the market, but what matters is the foundation, however, one of the growing coins with good foundations and potential in the crypto market is ATOM. Generally, when we mention the word atom we focus on nuclear objects 😳 but that's not what I'm talking about. Though the first time I heard of the name ATOM coin from my friend I never believed such a name exist in the crypto world. The name enticed me to know better about the coin. Then later, I found that the full name was Cosmos.
The word ATOM is the short form of Cosmos. However, ATOM coin is a native coin of the Cosmos blockchain and was built in the Cosmos system, however, in the crypto sphere, the Cosmos was created as an ever-expanding ecosystem of apps and services connected using Inter-Blockchain Communication protocol (IBC) for a decentralized future.
Moreover, the Cosmos as broadcasted as the internet of blockchain by its founding team was developed as a network of crypto networks intertwined by open-source tools for streamlining transactions between them. As such, its customizability and interoperability make Cosmos different from other projects. That's rather than prioritizing its network, its motive is to promote an environment of networks whereby users can share data and tokens programmatically, with no involvement of a third party (intermediate) stimulating the action.
So, the inceptions of Cosmos can be dated back to 2014, at the creation time of Tendermint, a core contributor to the network that's a consensus algorithm that would go on to power Cosmos, however, it was realized by two developers named Jae Kwon and Ethan Buchman.
As of the year 2016, Kwon and Buchman later designed the Cosmos white paper, and a token sale was carried out the following year (2017), which is the initial coin offering (ICO) of the ATOM token at the time raising over $17 million. Then later, they published its software in 2019 as Tendermint Inc. lifted $9 million to maintain the development of the project through a series an allocations.
Nevertheless, this innovation encourages users to voluntarily exchange assets and data across sovereign decentralised blockchains. And now, users earn ATOM tokens through a hybrid proof-of-stake consensus algorithm, and they assist to maintain and secure the Cosmos Hub ( a blockchain that gives vital services to the heart of the interchain).
Also, ATOM has a part in the system’s governance. Every new independent blockchain established within Cosmos is known as a zone and then is tethered to the Cosmos Hub, which retains and secure a record of the region of each zone and vice versa. Note that the Cosmos Hub is a proof-of-stake blockchain-powered by its native cryptocurrency called ATOM. This entails that ATOM plays a vital position in the governance of the system.
How does Cosmos work
Understanding how it works is very vital and it consists of three layers that rely on a set of open-source tools.
√ Application – here, it gives the details of the processes of the transactions and updates about the state of the Cosmos network.
√ Networking – this layer Permits easy transmission between transactions and blockchains.
√ Consensus – this is another important layer that assists nodes' agreement on the recent state of the network.
All the participants known as validator nodes have to stake ATOM to power the blockchain and cast a vote. Here, to become a validator, the user has to be in the top 100 of the nodes staking of the token (ATOM), which means the voting power is determined by the amount of the token staked. The high you stake, the high your voting power.
Nevertheless, there are also a set of users called the delegators, theirs is to delegate their ATOM to other validators nodes and distribute votes to them respectively and in return earn a block reward. This entails that Cosmos blockchain rewards validators with ATOM depending on the amount of the tokens they are staked. Similarly, delegators receive a small amount of the block reward.
WHERE TO PURCHASE IT
To purchase ATOM is very simple all you need is to find where the token is listed on crypto exchanges for instance you can find it currently in Binance, OKX, BTCEX, DigiFinex, Bybit and so on.
MY ATOM/USDT TRADE
Just as I said on my first trade I am among the set of traders who believe that when BTC drops or raise, other coins fall or raise as well. The dominance of BTC is to me is very powerful. So, most times, the fall of BTC cause harm to other coin called Altcoins.
For my entry, I still deemed the growing interests of the Russia-Ukraine crisis which has led to the price dip. First, I checked the direction of the market and I observed ATOM is forming a falling wedge pattern. If ATOM breaks the resistance then we see nice upward movement. The market is highly volatile and it is very risky to open new trades but I took a risk believing it won't break the resistance instead it will test the resistance and bounce back. I receive a bearish crossover of the 20 EMA below the 50 EMA. Though what enticed me was the downtrend even when the market starts showing a series of the green candle. Let's check out the chart image below.
Though I know how risky it was then I used a tight stop loss and placed my entry after the order blocks. That's the small green candle followed by long red candles indicating volume. The RRR risk to reward ratio is 5:02, with a small margin and leverage of 5×.
We can see in the screenshot above, my trade didn't hit my take profit instead hit my Stop loss.
After the breaking news that Vladimir Putin says he's ready to negotiate with UkraineSrc instantly all crypto markets are regaining because of this news. We can see high volatility on the market which made my trade hit stop loss. The below chart shows the current direction of the market after the news.
MY RECOMMENDATIONS
ATOM is one of the promising coins aiming to reach the level of BTC and ETH. From the post, we will observe that it has a good foundation full of potential to rise. So, I recommend you buy atom but wait when it drops to $25 and sell once it appreciates like $30. I don't think is a coin to hold I see it as a short term coin whereby buy and once you appreciate like 10 percent you sell and wait when it falls again this is for spot trading.
However, Trading with margin (Futures) is full of risk, so I recommend extensive research on technical indicators and knowledge of price action strategies with proper risk management when making any trade entry. Always make a proper analysis fundamental and technically.
THANKS FOR READING THROUGH
All charts images were gotten from the Tradingview