Analyst Says ATOM Has 'A Great Chart'

Analyst Says ATOM Has ‘A Great Chart’

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Cosmos is presently held between a rock and a tough place available in the market, based on crypto analyst Alan Santana. To him, this can be a very opportunistic time for long-term buyers, most particularly these with a bullish outlook.

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He feels that ATOM is at the moment buying and selling at fairly a exceptional low cost from the highs posted, therefore positioning itself for a really compelling risk-reward entry. In line with Santana, Cosmos has “an awesome chart” as a result of the coin is buying and selling very low in comparison with historic costs.

Cosmos: Accumulation Part and Dangers

Santana emphasised that Cosmos was in its vital part of accumulation. However, ATOM has traditionally shaped increased long-term lows, which may very well be a technical indicator setting a stage for future beneficial properties.

Nevertheless, accumulation comes with dangers. The important thing degree to look at could be $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.

ATOM market cap at the moment at $1.76 billion. Chart: TradingView.com

One other strain on ATOM comes from insider promoting. As quickly because the builders, miners, or exchanges start 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

Though Santana’s sentiment is barely overly hopeful, the market sentiment is overwhelmingly bearish. In line with 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.

Supply: CoinCodex

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.

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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 might yield large rewards for long-term buyers who can deal with the storm. Nevertheless, hostile temper, insider promoting, and value lower expectations are dangers.

Featured picture from Zipmex, chart from TradingView