Cosmos (ATOM) Pre-2025 Bull-Market Accumulation Zone & Technique

Cosmos has an awesome chart because it's buying and selling very low in comparison with historic costs. This can be a very opportunistic time for long-term buyers

Crypto analyst Alan Santana has some attention-grabbing insights on Cosmos (ATOM), presently caught between a rock and a tough place within the market. Based mostly on Santana, this might current a really opportunistic time for long-term buyers, particularly these with a bullish outlook.

He feels that ATOM is at the moment buying and selling at fairly a exceptional low cost from the highs posted, thus positioning itself for a really compelling risk-reward entry.

“Cosmos has an awesome chart as a result of it’s buying and selling very low in comparison with historic costs,” mentioned Santana.

Cosmos (ATOM) Pre-2025 Bull-Market Accumulation Zone & Technique

How are you doing my expensive good friend?

Prepared for a brand new yesterday, tomorrow-today?

Are you able to uncover this chart with me on this great day?

Cosmos has an awesome chart as a result of it’s… pic.twitter.com/SH4yrF76yd

— Alan Santana (@lamatrades1111) August 14, 2024

Emphasizing on Cosmos being in its vital part of accumulation, Santana highlighted that historically, ATOM has formed increased long-term lows, a technical indicator that might be setting a stage for future beneficial properties.

However, accumulation comes with its dangers. The important thing degree to look out for is $1.923, a low from March 2020. Ought to the worth of ATOM go beneath 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 lead to weaker efficiency in contrast with different cryptocurrencies.

One other strain on ATOM comes from insider promoting. As quickly because the builders, miners, or exchanges begin to promote their holdings en masse, that often turns into a purple flag indicator of issues throughout the mission or, on the very least, a scarcity of perception in its additional perspective.

This may be why, particularly, Cosmos can’t maintain up that properly in comparison with different altcoins, which have been capable of keep above their June 2022 lows.

Bearish Forecast And Market Sentiment

Regardless of Santana’s sentiment being barely overly hopeful, the market sentiment is overwhelmingly bearish. Based mostly on CoinCodex’s most up-to-date prediction, Cosmos will lose 8.56% and its value will fall even additional to $4.13 by September 15, 2024.

All technical indicators on this forecast are bearish. The Worry & Greed Index has lastly reached 27, displaying a lot concern available in the market. For Cosmos, there have been 9 inexperienced days over the past 30 days—out of a doable complete of 30.

This interprets right into a optimistic return fee of 30%. Its present value volatility is at 11.64%, indicating a extremely unsure and dangerous timeframe.

Nicely, contemplating the present state of the market, it might not be a super time to spend money on Cosmos. Based mostly on the elements talked about above, particularly the worth drop forecast and the present sense of concern available in the market, it will appear that warning is due.

Weighing The Dangers and Rewards

Though Santana’s evaluation exhibits that this might really be helpful for future acquire, the outlook instantly isn’t so promising. The elements due to this fact need to be considered by the investor prior to purchasing.

Cosmos is a high-risk, high-reward state of affairs. The present low value and former increased lows may yield large rewards for long-term buyers who can deal with the storm. However, hostile temper, insider promoting, and value lower expectations are risks.