Cosmos rockets 16% in a day; Here’s why ATOM just went nuclear

Cosmos ( ATOM ) has staged a remarkable comeback, soaring 16.72% over the past 24 hours to trade above $5.06 at press time. The spike in price was matched by a sharp increase in investor activity, with trading volume climbing 56.78% to $247.87 million and market capitalization rising to $1.93 billion. As a result, ATOM secured the top spot among the 100 largest cryptocurrencies by daily gains on April 4. ATOM tops the charts among the 100 largest cryptocurrencies by daily gains Source: CoinMarketCap Despite the recent breakout, ATOM remains down over 19% year-to-date, highlighting the depth of its earlier losses. However, it has managed to gain 20% over the past month, signaling a shift in sentiment even as broader market conditions remain uncertain . ATOM one-month price chart. Source: Finbold Key catalysts behind ATOM’s rally The rally was driven in part by eToro’s announcement that it had launched staking support for Cosmos and Polkadot ( DOT ). This enables eligible users to earn passive income by simply holding the assets—offering a new incentive for long-term holding and potentially reducing sell pressure. Another major catalyst fueling optimism came earlier in March when Cosmos core contributor Interchain Labs successfully tested an Inter-Blockchain Communication (IBC) transaction from Cosmos Hub to Ethereum ( ETH ), aiming to enhance native token interoperability between the two networks. This development is part of the upcoming Eureka upgrade, expected to roll out with IBC-go v10 later this year. The expansion of the IBC protocol beyond Cosmos, with plans to connect it to major networks like Ethereum and Solana ( SOL ), shows the project’s long-term vision of becoming a universal standard for blockchain communication. Technical indicators support the bullish case for ATOM On the technical side, ATOM’s momentum is supported by strengthening indicators. The token is now trading above all major moving averages , including the 10-, 20-, 50-, 100-, and 200-day exponential and simple moving averages. This alignment suggests a sustained uptrend, further confirmed by a bullish Volume Weighted Moving Average (VWMA). With these technicals in its favor, ATOM is currently testing resistance around $5.10. A successful breakout could open the door to further upside. However, traders remain cautious of potential retracements, with support levels at $4.40 and $4.20, and a stronger floor near $3.60 in case of a major pull back. Featured image via Shutterstock The post Cosmos rockets 16% in a day; Here’s why ATOM just went nuclear appeared first on Finbold .