Key Takeaways:
Cosmos Hub (ATOM) saw its price increase by more than 9% on Wednesday, pushing above $2.15 following the announcement of a strategic partnership with Injective to integrate a native USDC stablecoin into its ecosystem.
The integration, which ensures long-term support for USDC on the Cosmos Hub for at least four years, is expected to enhance liquidity and cross-chain interoperability. "The partnership will utilize the Cross-Chain Transfer Protocol (CCTP) to facilitate one-signature transfers, with protocol fees used to programmatically buy back ATOM tokens," the announcement detailed, introducing a new demand driver for the token.
On-chain data from Santiment confirmed a surge in activity, with ATOM’s trading volume reaching $120.74 million on Wednesday, the highest level recorded since early February. This jump in volume points to growing trader interest and improved liquidity conditions. Spot markets show a dominance of buy-side orders, while other metrics remain neutral, suggesting potential for continued upward movement.
From a technical perspective, ATOM is trading above its 50-day and 100-day Exponential Moving Averages (EMAs), at $1.90 and $1.97 respectively, which supports the near-term bullish outlook. However, the 4-hour Relative Strength Index (RSI) has moved into overbought territory at approximately 75. This suggests the rally may be overextended, raising the possibility of a short-term price correction. Initial resistance is now seen at the 200-day EMA around $2.34, with a further ceiling at the 38.2% Fibonacci retracement level of $2.39. Should a pullback occur, immediate support lies at the 23.6% Fibonacci level of $2.09, followed by the 100-day EMA at $1.97.
This article is for informational purposes only and does not constitute investment advice.
