- Centauri has been launched to make sure interoperability between Cosmos and Polkadot.
- ATOM has seen a reduction in buying pressure since the start of the third quarter.
To address the long-standing challenge of interoperability between the Layer 0 network Cosmos [ATOM] and Layer 1 necklace Polkadot [DOT]Composable Finance announced the launch of Centauri via a blog post published July 11.
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According to the announcement blog post, while network interoperability has been a shared goal for both the Cosmos and Polkadot ecosystems, the lack of an effective connectivity system between the two networks has hindered their progress and limited their potential user base.
Centauri has been deployed to provide a solution to this problem and uses the Inter-Blockchain Communication (IBC) Protocolwhich extends the functionality of the Cosmos-based apps beyond their previous limitations.
This integration will facilitate the live connection between Polkadot and Cosmos app chains, starting with the Picasso parachain and the popular Osmosis Decentralized Exchange (DEX).
ATOM feels the seriousness of the falling buying interest
The month has been plagued by a drop in ATOM coin accumulation so far. An assessment of the price movement of the alt on a daily chart revealed a sharp drop in key momentum indicators below their respective neutral positions.
For example, the Relative Strength Index (RSI) was 48.25 at the time of going to press.
Closer to the oversold territory, the Money Flow Index (MFI) indicator marked its spot at 37.44. These suggested a gradual reduction in ATOM buying pressure as more investors began to payout rather than accumulate.
In addition, a negative Chaikin Money Flow (CMF) over the past two days suggested more liquidity was moving out of the ATOM market. A CMF reading below zero is generally seen as a sign of weakness in the market. At the time of writing, ATOM’s CMF was -0.03.
Furthermore, ATOM’s Awesome Oscillator Indicator has been posting mostly short red histogram bars resting above the zero line for the past few days. This suggested that bearish momentum was steadily growing.
Source: ATOM/USDT on TradingView
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It implied that sellers controlled the ATOM market, and there was downward pressure on the price at the time of going to press.
At the time of writing, the Negative Directional Index (red) of the Directional Movement Index indicator rested above the Positive Directional Index (green), confirming that ATOM sellers had control over the market.