Cosmos is presently held between a rock and a tough place available in the market, in response to crypto analyst Alan Santana. To him, this can be a very opportunistic time for long-term traders, most particularly these with a bullish outlook.
Associated Studying
He feels that ATOM is at present buying and selling at fairly a outstanding low cost from the highs posted, therefore positioning itself for a really compelling risk-reward entry. In keeping with Santana, Cosmos has “an ideal chart” as a result of the coin is buying and selling very low in comparison with historic costs.
✴️ Cosmos (ATOM) Pre-2025 Bull-Market Accumulation Zone & Technique
Cosmos has an ideal chart…
How are you doing my pricey good friend?
Prepared for a brand new yesterday, tomorrow-today?
Are you able to discover this chart with me on this great day?Cosmos has an ideal chart as a result of it’s… pic.twitter.com/SH4yrF76yd
— Alan Santana (@lamatrades1111) August 14, 2024
Cosmos: Accumulation Part and Dangers
Santana emphasised that Cosmos was in its important part of accumulation. Then again, ATOM has traditionally shaped larger long-term lows, which may very well be a technical indicator setting a stage for future positive aspects.
Nonetheless, accumulation comes with dangers. The important thing degree to look at can be $1.923, a low from March 2020. Ought to the value of ATOM go under this threshold, it will considerably undermine the bullish narrative Santana presents.
Such a decline may very well be interpreted as a shift in market sentiment and would end in weaker efficiency in contrast with different cryptocurrencies.
One other stress on ATOM comes from insider promoting. As quickly because the builders, miners, or exchanges start to promote their holdings en masse, that normally turns into a purple flag indicator of issues inside the challenge or, on the very least, a scarcity of perception in its additional perspective.
This may be why, particularly, Cosmos can’t maintain up that effectively in comparison with different altcoins, which have been capable of keep above their June 2022 lows.
Bearish Forecast And Market Sentiment
Though Santana’s sentiment is barely overly hopeful, the market sentiment is overwhelmingly bearish. In keeping with CoinCodex’s most up-to-date prediction, Cosmos will lose 8.56% and its worth will fall even additional to $4.13 by September 15, 2024.
All technical indicators on this forecast are bearish. The Concern & Greed Index has lastly reached 27, displaying a lot concern available in the market. For Cosmos, there have been 9 inexperienced days over the last 30 days—out of a doable whole of 30.
This interprets right into a optimistic return charge of 30%. Its present worth volatility is at 11.64%, indicating a extremely unsure and dangerous time-frame.
Nicely, contemplating the present state of the market, it might not be an excellent time to put money into Cosmos. Based mostly on the elements talked about above, specifically the value drop forecast and the present sense of concern available in the market, it will appear that warning is due.
Associated Studying
Weighing The Dangers and Rewards
Though Santana’s evaluation exhibits that this might truly be helpful for future achieve, the outlook instantly is just not so promising. The elements subsequently need to be considered by the investor prior to purchasing.
Cosmos is a high-risk, high-reward situation. The present low worth and former larger lows might yield enormous rewards for long-term traders who can deal with the storm. Nonetheless, hostile temper, insider promoting, and worth lower expectations are dangers.
Featured picture from Zipmex, chart from TradingView