Posted:
- Voters on the Cosmos network are in a tight race with regards to the ATOM halving.
- The sentiment around ATOM is switching from bearish to bullish.
The Cosmos [ATOM] community is in the process of deciding if the token halving should come with a reduction in the inflation rate.
At the time of writing, AMBCrypto’s investigation into the voting procedure showed that the proposal might be rejected. But that would only happen if the current outcome remains the same.
It’s a “no’ for new
At press time, 36.8% of the voting populace wanted an inflation reduction. A close 39.9% prefer the “no” option. About 22.1% of the Cosmos community have decided to abstain.
However, members of the community still have until 25th November to let their thoughts known.
Source: Mintscan
The upcoming ATOM halving is billed for March 2024. Unlike the more popular Bitcoin [BTC] halving, the ATOM halving occurs every two years.
Also, the mechanism around the event is to increase security on the Cosmos network. Additionally, it aims to increase demand for the ATOM token.
The proposal discussed is geared towards reducing the inflation rate of the token from 14% to 10%. Also, it aims to reduce the staking APR from 19% to 13.4%. If approved, the reward for delegators and validators would be cut.
Interestingly, the proposal is only the first of three that might involve the same objective. However, the differing opinions in the community do not mean Cosmos would halt the development of the project.
Cosmos continues building and ATOM stays bullish
Gauging the activity on the network, AMBCrypto through Santiment’s on-chain data found out that development activity was very much operational. Development activity here measures the commitment developers have toward shipping new features on a blockchain.
So, the increase in the metric implies that developers are not refraining from their duty of keeping the network in good shape.
Also, it seemed that the broader market was changing from a bearish bias to a bullish one on ATOM. This was indicated by the weighted sentiment.
Source: Santiment
Weighted sentiment measures the comments market players have about a project. Therefore, the rise from -6.108 to 0.357 means that the pessimistic perception is changing.
In terms of the price action, ATOM hit $10 in the early hours of 16th November. Like other altcoins, the price has been surging in the last 30 days. On looking at the Relative Strength Index (RSI), AMBCrypto’s analysis discovered that ATOM’s buying momentum was solid.
At press time, the RSI reading was 58.69. Although ATOM had retraced to 9.90, the bullish momentum indicates that it could reclaim $10 in no time. Another indicator supporting the uptick is the Awesome Oscillator (AO).
How much are 1,10,100 ATOMs worth today?
The AO had a bullish crossover on 15 November. As of this writing, the indicator reading was 0.42 with increasing green bars.
Should the AO reading continue to increase, then ATOM may flip $10.50 in the short term.
Source: TradingView