Cosmos ($ATOM) saw a 10% increase recently, fueled by eToro's announcement of staking integration and significant progress within its ecosystem. However, persistent security concerns cast a shadow over the excitement, leading to a sense of cautious optimism among potential investors.
On Friday, March 29, Cosmos ($ATOM) surged by 10% following eToro's declaration of staking support for the token, which elevated its price to a local high of $4.86. eToro's initiative allows eligible users to earn rewards by holding both Cosmos ($ATOM) and Polkadot ($DOT), triggering the recent price spike.
Despite this rally, the token has declined by 57.3% year-to-date, positioning it as one of the weaker performers among the top 50 cryptocurrencies.
Building a Robust Ecosystem and Expanding Cross-Chain Features
Cosmos remains focused on its vision of becoming the "Internet of Blockchains," aiming to enhance cross-chain communication and data exchange.
A significant milestone occurred on March 18 when the Interchain Foundation, a prominent organization within the Cosmos ecosystem, open-sourced Evmos. This development established Evmos as the native Ethereum Virtual Machine (EVM) framework for the network.
Launched in 2022 as a progression of the Ethermint project from 2016, Evmos facilitates Ethereum compatibility across more than 200 application chains within the Cosmos multi-chain ecosystem.
Additionally, there has been progress in stablecoin issuance. In November 2024, asset issuance chain Noble, in collaboration with fiat issuer Monerium, introduced the first Euro-backed stablecoin on Cosmos. This stablecoin is designed to be fully interoperable and can easily be exchanged with $USDC across any blockchain that integrates with Cosmos.
Investor Concerns Heightened by Lazarus Group Allegations
Investor unease was stirred by reports linking some contributors from the Cosmos community to the Lazarus Group, a North Korean cybercrime organization responsible for high-profile hacks, including the $600 million exploit of the Ronin bridge.
In response, Informal Systems—a core development team within the Cosmos ecosystem—proposed a "phased removal" of the Cosmos Liquid Staking Module (LSM), which oversees staking and governance operations. The proposal aims to replace this module with a new validator and governance framework that emphasizes security and fosters trust within the network.
Speculation surrounding these allegations has negatively impacted market sentiment. From its peak above $44 during the bullish trend of 2021, $ATOM has since lost over 80% of its value.
Technical Analysis – Support Levels Hold, but Reversal Uncertain
As of the latest data, Cosmos ($ATOM) is trading at $4.69, reflecting a 9.32% increase for the day. While the token has been in a downtrend since dropping below $10, recent price movements hint at the formation of a potential base around the $4 mark.
Key support is identified at $4.00, while immediate resistance is observed at $5.00. The MACD momentum currently shows a neutral reading, indicating that a bullish crossover could signal an early trend reversal.
Cosmos appears to have established a double bottom pattern between September 2024 and March 2025, a bullish setup that investors often monitor. However, a decline below $4.00 would invalidate this formation, suggesting further downside risk.
If $ATOM can maintain its position above $5.00 and breach this resistance level, it could signal a movement toward the $5.50–$6.00 range, indicating a potential shift in short-term market sentiment.
In conclusion, while the recent staking support and technical advancements have rekindled interest in Cosmos, ongoing concerns regarding governance and security continue to undermine investor confidence. Traders might want to look for confirmation above the $5.00 level before considering further investment opportunities.
