ATOM jumps 10% as Coinbase adds staking for the token

Coinbase announced it would offer staking rewards for ATOM holders, joining Tezos as the only cryptocurrencies on the platform with this feature. Cosmos users in the US, UK, France, Spain, Belgium, and the Netherlands can now stake their tokens and earn 5% annual percentage yield, distributed every seven days. The announcement should attract buyers toward the $5.77 resistance level, where the 50-day moving average sits. This area remains the only major hurdle between current prices and higher targets. Beyond this level, buyers have significant room to make further gains. If momentum carries past this point, traders see a path to $8.60, matching the token's all-time high.

The chart shows ATOM breaking above a falling wedge pattern, a setup seen before rallies. The token has maintained an uptrend above the upper limit after being capped within converging trendlines for over a month. The breakout projects gains equal to the pattern's height. An ascending channel contains the current trading range, with its lower limit aligned to the pattern's base.

If buyers validate the pattern breakout and retest the upper channel line resistance, the next rally could push toward $7.65, up 45% from current levels. The Relative Strength Index climbs, giving the advantage to bulls. The 100 EMA and the lower channel limit provide support near $4.2 and $4.00 in case of a strong rejection near the 50 MA.