ATOM Rallies by More Than 12% as Broader Market Recovers

The cryptocurrency market has spent most of the month in a bearish trend, with the prices of most coins in the red zone. However, the market has started to recover slowly, heading towards the end of the year.

ATOM Surges as Interlay Builds Cosmos DeFi Solution

ATOM is one of the top performers in the market at the moment, after rising by more than 12% over the past 24 hours. As a result, ATOM is currently outperforming numerous cryptocurrencies in the broader market.

The rally comes after Interlay announced that it had raised $6.5 million in a recent funding round. The firm will use the funds to build infrastructure for decentralized finance (DeFi) applications across major blockchains like Ethereum, Cosmos and Polkadot.

ATOM is the native token of the Cosmos blockchain, and the announcement could be the major catalyst behind the rally. The solution is expected to boost the cross-chain possibilities for Bitcoin, ensuring DeFi interoperability between Bitcoin and the blockchains like Cosmos and Ethereum.

Cosmos is an ecosystem of networks and tools designed to create interoperable blockchains. Its main chain Cosmos Hub serves as the central ledger for compatible blockchains called Zones. ATOM is the native coin powering the entire Cosmos ecosystem.

ATOM’s rally comes after the cryptocurrency underperformed for the past few weeks. At press time, ATOM is trading above $25 per coin. However, the coin has struggled below the $20 mark over the past six weeks.

Cosmos’s Native Coin Could Rally Higher

ATOM has performed well so far this year, adding nearly 300% to its value in the last 12 months. The coin could rally higher over the coming days and weeks if the market can maintain the current momentum. ATOM’s technical indicators show that the coin is in a bearish trend due to its poor performance in recent weeks.

The MACD line is still in the negative region despite the recent good performance. The 14-day relative strength index of 50 shows that ATOM is just coming out of an oversold situation and is yet to enter the positive territory. At press time, ATOM is trading below its 50-day moving average of $27.92.

If the market rally is sustained, ATOM could rally towards the first major resistance level at $28.94 in the coming hours. Unless there is an extended bullish run, the resistance level at $35 should cap further upward movement in the short term.