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NEW DELHI (CoinChapter.com) — Blockchain scaling platform Cosmos plans to launch its Lambda upgrade on Mar 15. Cosmos bulls eagerly await the update, hoping to profit from the resulting upswing in price action.
Per Cosmos’s announcement, the Lambda upgrade would go live on Mar 15, 2023, at block height 14470501. The upgrade would introduce the first iteration of Replicated Security.
Cosmos detailed that Replicated Security is a shared security model, which would help Cosmos Hub offer security to new projects launching on the blockchain. In addition, the consumer chain would lease security from the Hub.
As a result, a consumer chain validation would require the entire Cosmos Hub validator set. As a result, the consumer chain would have access to the Cosmos Hub validator set in exchange for sharing revenue with the Hub.
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Therefore, consumer chains would not need to maintain a separate validator set. ATOM delegators and validators would get a share of the revenue from the consumer chains, apart from the staking rewards.
If the consumer chain has a native token, validators will receive their rewards in the consumer chain’s tokens. Otherwise, the reward would be the application fee that the consumer chain generates.
The upgrade would add improvements to the Cosmos SDK governance system that could make community pool funding more accountable.
ATOM Moving Inside A Massively Bearish Pattern
Though the upgrade would likely add bullish cues to the Cosmos token’s price action, bearish risks persist for the ATOM token. ATOM price are moving inside a technical pattern called the bear pennant.
In detail, pennants are continuation patterns. They form when a period of consolidation with converging trendlines follows a large movement in cryptocurrency prices. Then, the asset breaks out in the same direction as the large initial movement.
Volumes play an important role in verifying the pattern. Per the rules of technical analysis, consolidation should occur with lower volumes, while higher volumes should accompany breakouts.
However, to confirm the pattern, ATOM volumes need to move up. Otherwise, the prime altcoin would continue to consolidate below $13. For a bear pennant pattern, traders calculate the price target by applying the initial flagpole’s height to the point where the price breaks out from the pennant.
Hence, the ATOM token price could drop to $1.82, shedding nearly 86% of its value along the way.
The post Bulls Await Cosmos Lambda Update, But ATOM Faces Bearish Pattern appeared first on CoinChapter.
