Cosmos is presently held between a rock and a tough place out there, in response to crypto analyst Alan Santana. To him, this can be a very opportunistic time for long-term investors, most especially those with a bullish outlook.
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He feels that ATOM is currently trading at quite a remarkable discount from the highs posted, hence positioning itself for a really compelling risk-reward entry. In accordance with Santana, Cosmos has “an incredible chart” since the coin is trading very low in comparison with historical prices.
✴️ Cosmos (ATOM) Pre-2025 Bull-Market Accumulation Zone & Strategy
Cosmos has an incredible chart…
How are you doing my dear friend?
Ready for a latest yesterday, tomorrow-today?
Are you able to explore this chart with me in this excellent day?
Cosmos has an incredible chart since it is… pic.twitter.com/SH4yrF76yd
— Alan Santana (@lamatrades1111) August 14, 2024
Cosmos: Accumulation Phase and Risks
Santana emphasized that Cosmos was in its critical phase of accumulation. Alternatively, ATOM has historically formed higher long-term lows, which could possibly be a technical indicator setting a stage for future gains.
Nonetheless, accumulation comes with risks. The important thing level to look at could be $1.923, a low from March 2020. Should the worth of ATOM go below this threshold, it will somewhat undermine the bullish narrative Santana presents.
Such a decline could possibly be interpreted as a shift in market sentiment and would end in weaker performance compared with other cryptocurrencies.
ATOM market cap currently at $1.76 billion. Chart: TradingView.com
One other pressure on ATOM comes from insider selling. As soon because the developers, miners, or exchanges begin to sell their holdings en masse, that sometimes becomes a red flag indicator of problems inside the project or, on the very least, an absence of belief in its further perspective.
This is likely to be why, specifically, Cosmos can’t delay that well in comparison with other altcoins, which have been capable of stay above their June 2022 lows.
Bearish Forecast And Market Sentiment
Although Santana’s sentiment is barely overly hopeful, the market sentiment is overwhelmingly bearish. In accordance with CoinCodex’s most up-to-date prediction, Cosmos will lose 8.56% and its price will fall even further to $4.13 by September 15, 2024.
All technical indicators on this forecast are bearish. The Fear & Greed Index has finally reached 27, showing much fear out there. For Cosmos, there have been nine green days in the course of the last 30 days—out of a possible total of 30.
Source: CoinCodex
This translates right into a positive return rate of 30%. Its current price volatility is at 11.64%, indicating a highly uncertain and dangerous time-frame.
Well, considering the present state of the market, it will not be a really perfect time to take a position in Cosmos. Based on the aspects mentioned above, namely the worth drop forecast and the present sense of fear out there, it will seem that caution is due.
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Weighing The Risks and Rewards
Although Santana’s evaluation shows that this might actually be helpful for future gain, the outlook immediately just isn’t so promising. The aspects due to this fact must be considered by the investor prior to purchasing.
Cosmos is a high-risk, high-reward scenario. The present low price and former higher lows could yield huge rewards for long-term investors who can handle the storm. Nonetheless, adversarial mood, insider selling, and price decrease expectations are risks.
Featured image from Zipmex, chart from TradingView