Cosmos [ATOM] co-creator Jae Kwon’s proposal to create “one constitution” may not end well for the founder. Kwon proposed an interchain hub on October 31 to improve the security of the Internet of Blockchain ecosystem. The Cosmos Hub, according to the proposal, would provide a much-needed check and balance economic mode for Cosmos.
While Kwon may have thought he was spreading goodwill, the Cosmos community seemed to think otherwise. This was due to the fact that at the time of publication, more than 85% of voters had rejected the proposal. According to Mintscan, a Cosmos-based block explorer, 54 million of the community’s 202 million members had voted.
A force to reckon with
Despite the rebuff, ATOM failed to follow a decreasing trend. According to CoinMarketCap, ATOM’s value had increased 7.09% between 3 and 4 November. Although the increase might be a good development for its investors, the volume showed that these same investors were not committed to seeing out a longer timeframe rally. This was because the 14.67% volume increase might not be enough to sustain the current uptick. As of 4 November, ATOM’s volume was 367.9 million based on Santiment data.
However, it was worth noting that the reaction of ATOM was different from other proposals. For the ATOM “zero constitution” which was almost certain of rejection, the ATOM price declined for most of the period. Additionally, ATOM had a similar response to the proposed validator incentive when it exchanged hands with an 11% price increase. In light of this, it might be considered necessary to assess the price action.
Per the four-hour chart, ATOM had gained an excellent buying momentum against the United States Dollar (USD). As of 4 November, the Relative Strength Index (RSI), at 67.01, signaled massive buying power. However, closing in on an overbought RSI of 70 or more was most likely bound to reverse the ATOM price trend.
The indications from the Directional Moving Average (DMI) showed that ATOM’s capability to maintain the greens was low. Although the buyers (green) positioned above the sellers (red), the Average Directional Index (ADX) in yellow, did not support a strong movement up the charts.
Developments and socials had this to tell
As for the development activity and social dominance, it was a clear contest of contrast. According to Santiment, developments in the Cosmos ecosystem had increased. At a value of 59.88, it was certain that the Cosmos team were integrating upgrades to the network.
As for the social dominance, it was a case of declining interests in the cryptocurrency. Santiment data showed that, at 0.283%, ATOM was nowhere near the top of search discussions on social networks. Finally, the proposal discussed above was relatively at its early stages. With voting to close on 14 Novembers, there could still be a change of heart.