![Biggest Movers: ATOM Falls Towards Multi-Week Low, as GRT Extends Recent Losses Biggest Movers: ATOM Falls Towards Multi-Week Low, as GRT Extends Recent Losses](https://static.news.bitcoin.com/wp-content/uploads/2022/06/shutterstock_1939214773.jpg)
ATOM's ascending triangle setup opens up the possibility for another major crash by June 2022.
Cosmos (ATOM) emerges as the biggest gainer among the top cryptocurrencies this May 20, brushing aside the fears about its association with Terra (LUNA), an algorithmic stablecoin project whose market valuation fell by 99% last week.
ATOM's price increased by over 10% intraday to almost $12. The gains appeared as a part of a broader upside retracement that started on May 12 when it had fallen to its eleven-month low near $8. That marked around a 45% price recovery in almost a week.
The ATOM price rebound occurred despite its parent chain, Cosmos Hub, witnessing massive capital outflows from its liquidity pools. Notably, the total value locked (TVL) with Cosmos dropped to around $155,000 on May 20, compared to its year-to-date high of over $10 million, according to Defi Llama.
Terra emerged as one of the primary reasons behind the drop since its liquidity pools made up 92% of the overall Cosmos TVL as of May 9. But on May 20, the project's stake in the Cosmos ecosystem was just around 17%.
Meanwhile, a hawkish Federal Reserve had also contributed to the selloff across riskier assets last week, hurting cryptos like Bitcoin (BTC), Ether (ETH), and ATOM in tandem, as Cointelegraph covered here.
From a technical perspective, ATOM remains at the risk of continuing its decline in Q2/2022.
First, the Cosmos token's 45% rebound accompanies a drop in its trading volumes, suggesting a low trader turnout behind the rally that, in turn, could lead to a price reversal. Second, the price appears to have formed an ascending triangle, a trend continuation indicator, as shown in the chart below.
As a rule of technical analysis, ascending triangles formed during a downtrend resolve after the price breaks below their lower trendline and continue falling until it reaches the level at length equal to the triangle's maximum height.
Applying the same theory on Cosmos shifts ATOM's downside target to $7.50 with the breakdown point around $10.35.
In some cases, however, ascending triangles in a downtrend could lead to a trend reversal instead of continuation. Therefore, the bulls could attempt a breakout with a run-up to the triangle's upper trendline near $12.50.
Related: Contrarian Bitcoin investors identify buy zones even as extreme fear grips the market
ATOM's likelihood of continuing its recovery is high if this occurs particularly with increasing trading volume. In doing so, the upside target for ATOM/USD could again be at the length equal to the maximum distance between the triangle's upper and lower trendline, as shown below.
In other words, the bullish scenario puts ATOM's price en route to $17.25 by June, up around 45% from today's price.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Projects associated with Terra suffer losses of more than 80% as contagion spreads. Meanwhile, Maker (DAI) gets a boost as traders look for other decentralized stablecoin options.
The knock-on effect of the collapse of Terra (LUNA) and its TerraUSD (UST) stablecoin have spread wide across the cryptocurrency market on May 11 as projects with any kind of association with the DeFi ecosystem have seen their prices hammered.
The forced selling of the Bitcoin (BTC) holdings backing a portion of UST also influenced BTC's current drop to $29,000 and analysts fear that DeFi platforms that have liquidity pools primarily comprised of UST and LUNA will collapse.
Projects with the direst of outlooks are those that are hosted on the Terra protocol including Anchor Protocol (ANC), Astroport (ASTRO) and Mars Protocol (MARS).
As shown in the chart above, Anchor Protocol (ANC), Astroport (ASTRO) and Mars Protocol (MARS) saw their token prices plummet more than 80% since May 4 when LUNA price first started to correct.
The protocols in question are all DeFi-focused, meaning that they had heavy integration with UST as the main stablecoin for their liquidity pairs as well as LUNA as a major source of value locked on their smart contracts.
As long as UST remains off its $1 peg and LUNA trades down 98% from where it was just 7 days ago, it is unlikely that these protocols will be able to bounce back and recover from today's fallout.
Assets in the Cosmos ecosystem were also hard hit by UST's collapse. ATOM and other tokens like Mirror Protocol (MIR), Osmosis (OSMO) and Kava that utilize the Interblockchain Communication Protocol (IBC) corrected sharply due to their integration with Terra.
The price declines for these assets was less extreme that those hosted on the Terra protocol, but their proxy to Terra has not protected them from contagion.
Related: LUNA meltdown sparks theories and told-you-sos from crypto community
Maker (MKR) is the one bright spot to emerge in trading on May 11 as crypto traders now find themselves embracing Dai (DAI) as the "best" decentralized stablecoin option in the market.
MKR price spiked 124% in trading on May 11, going from a low of $1,025 to an intraday high of $2,299 before settling back down to $1,278.
As the market digests the current correction and news of fund and protocol collapses emerge, it will be interesting to see how other stablecoin protocols like Frax Share (FXS), USDD and mStable (MTA) perform and whether or not crypto traders will shy away from these projects for more centralized options.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
A popular crypto analyst is digging into the charts as the markets try to recover from a rocky start to the week. The pseudonymous analyst known as Altcoin Sherpa tells his 175,400 followers that leading smart contract platform Ethereum (ETH) has already fallen back to its January lows in the $2,100 range. “Interesting observation for […]
The post Crypto Analyst Says Ethereum Showing Strength, Updates Forecasts for Top ETH Rivals appeared first on The Daily Hodl.
Australians will soon have five options for cryptocurrency exchange-traded funds as the delayed funds from Cosmos and 21Shares launch this week along with 3iQ’s in the future.
Australians will soon have more options for spot cryptocurrency exchange-traded funds (ETFs) after a previous hold-up was given the green light this week and new funds entered the ETF market.
The latest update came late on May 9 as Cboe Australia issued a round of market notices that three funds previously delayed are expected to begin trading on Thursday, May 12. They include a Bitcoin ETF from Cosmos Asset Management, plus Bitcoin (BTC) and Ethereum (ETH) spot ETFs from 21Shares.
Cboe Australia and Cosmos did not immediately respond to a request for comment, but a spokesperson from 21Shares confirmed to Cointelegraph:
“We're listing on May 12, this Thursday. The downstream issues are resolved.”
On April 26, a day before three of the first crypto ETFs were set to launch, the Cboe Australia exchange delayed the listing of all three funds due to what it said were “standard checks”.
21Shares said to Cointelegraph at the time that a "service provider downstream” needed more time to support the launch of the products which was believed to be a prime broker or other major financial institution.
The listing date comes just in time as a new competitor stepped into the ETF race. 3iQ, the Canadian firm with Bitcoin and Ethereum spot ETFs listed on the Toronto Stock Exchange (TSX), submitted two offer notices to the Australian Securities Exchange (ASX) on April 28.
Related: BlackRock launches blockchain industry ETF, names crypto as 1 of 3 big opportunities
The notices revealed plans for the firm to offer units of its Bitcoin and Ethereum ETFs on the Cboe Australia exchange. It will provide exposure to the crypto assets by purchasing units of the existing funds on the TSX similar to Cosmos’ ETF which purchases the Canadian Purpose Bitcoin ETF.
It’s unclear when the funds from 3iQ will be listed but with the announcement of the Cosmos and 21Shares funds listing this week, it’s unlikely 3iQ will win the competition of being the first Australian crypto ETF, the prize of which it’s believed could be over $1 billion in inflows.
A popular crypto analyst is looking under the hood at a pair of Ethereum (ETH) alternatives to see which one might come out on top. In a new strategy session, pseudonymous Coin Bureau host Guy updates his 2.03 million YouTube subscribers about his expectations for cross-chain interoperability protocol Polkadot (DOT) as well as Cosmos (ATOM), […]
The post Polkadot (DOT) vs. Cosmos (ATOM): Coin Bureau Looks at Two Fast-Rising Ethereum Competitors appeared first on The Daily Hodl.
A closely tracked crypto strategist is mapping out the potential bottom for one Ethereum (ETH) challenger while predicting bounces for Cosmos (ATOM) and The Graph (GRT). Pseudonymous analyst Altcoin Sherpa tells his 174,500 Twitter followers that developer-focused blockchain Near Protocol (NEAR) is likely close to printing a local bottom. “I’m guessing this finds a short-term […]
The post Crypto Analyst Says One Ethereum Rival Carving Bottom, Predicts Rallies for Cosmos (ATOM) and The Graph (GRT) appeared first on The Daily Hodl.
Three cryptocurrency exchange-traded funds (ETFs) scheduled to launch on the Cboe Australia exchange today were delayed due to “checks” still being undertaken.
The launch of Australia’s first three Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETF) scheduled for today, has been delayed as a result of further “checks” needing to be completed.
The exchange listing the Bitcoin Spot ETF from Cosmos Asset Management, Cboe Australia, released a statement late Tuesday stating that “standard checks prior to the commencement of trading are still being completed” and a “further update will be provided in the coming days.”
Cboe issued the same notice regarding two spot ETFs issued by 21Shares also scheduled for launch today, a Bitcoin ETF and an Ethereum ETF.
It’s unclear why the products are delayed with the Australian Financial Review reporting that a “service provider downstream” — an entity such as a prime broker or major institution with the power to delay listings until it's ready to support the trade of the products — could be to blame for the hold up.
The underlying asset for the Cosmos ETF is a direct investment into the Canadian Purpose Bitcoin ETF, North America’s first Bitcoin exchange-traded fund. The funds issued by 21Shares are backed by Bitcoin and Ethereum reserves held in cold storage by Coinbase.
Toby Chapple, Head of Trading at Australian wealth management firm Zerocap, told Cointelegraph the delay was “not a big deal.” Referring to the Cosmos Bitcoin ETF he added:
“You would think an ETF which invests in another ETF would be easier to handle, but the broker will just be ensuring they have all their ducks lined up before they go live.”
Cici Lu, Managing Partner at crypto asset investment and wealth management firm Apollo Capital also said that it seemed like just a small bump in a long road for the funds:
“While this isn't an ideal start for the ETF's, it will be looked at as only a minor speed bump in an otherwise successful result for the crypto asset industry in Australia.”
He added: “The traditional finance sector is trying to get its head around how to adapt their businesses to a new asset class, it is a journey both crypto and TradFi are on together. ”
Cointelegraph contacted Cboe Australia, Cosmos and 21Shares for more information regarding the delays but did not immediately hear back.
Cosmos Asset Management’s “Cosmos Purpose Bitcoin Access ETF” received approval from the Australian Securities Exchange (ASX) on April 19 to begin trading following a seven-day notice period and was expected to attract around $1 billion after its launch.
The two ETFs issued by 21Shares received approval around the same time, aligning all three funds with the same launch date.
Related: Australian prudential regulator releases roadmap for cryptocurrency policy
21Shares isn’t a stranger to hold ups with its crypto ETF products Earlier in April the United Stated Securities and Exchange Commission (SEC) rejected its Bitcoin ETF which was to list on the US Cboe BZX Exchange saying the exchange didn’t meet requirements for listing a financial product.