Cosmos (ATOM) Faces Regulatory Concerns Amid Market Rally
The cryptocurrency ATOM, fueling the Cosmos network of parallel blockchains, is experiencing a surge in Friday's market sentiment. ATOM/USD is approaching weekly highs, nearing the $9.0 per token level, marking a nearly 3.0% gain for the session. This rally aligns with positive market sentiments fueled by expectations surrounding the potential approval of BlackRock's spot bitcoin ETF application.
Despite the current upswing, ATOM had recently touched near one-year lows around $7.30, posting an impressive more than 20% recovery. However, concerns persist among investors, fearing that regulatory actions could lead Cosmos to a value of zero.
The recent crackdown by the U.S. Securities and Exchange Commission (SEC) on major exchanges like Coinbase and Binance has labeled ATOM as a security. If the SEC prevails in its lawsuit against these exchanges, ATOM might face heightened regulations in the U.S., potentially stifling ecosystem growth. Currently, ATOM remains over 16% lower than its pre-SEC lawsuit levels, approximately around $10.75.
Unless ATOM achieves a sustained breakout beyond key resistance in the $10.20-30 range, the technical outlook remains pessimistic, with a retest of 2022's lows under $6.0 considered a strong possibility.
Eco-Friendly Crypto Ecoterra Secures Over $5.1 Million Funding
In contrast to ATOM's uncertain outlook, Ecoterra, an environmentally conscious crypto project, is making positive strides. The project, powered by the $ECOTERRA token, aims to create an all-encompassing Web3 ecosystem. It introduces a groundbreaking Recycle-to-Earn (R2E) app to promote recycling, facilitate the trade of recycled materials, and encourage individuals and businesses to offset their carbon footprint.
Ecoterra's native token, $ECOTERRA, has garnered significant support, with its presale surpassing $5.1 million. This substantial funding is a testament to the crypto community's confidence in Ecoterra's vision and mission.