Analyst Says ATOM Has 'A Great Chart'

Cosmos is presently held between a rock and a hard place in the market, according to crypto analyst Alan Santana. To him, this is a very opportunistic time for long-term investors, most especially those with a bullish outlook.

Cosmos: Accumulation Phase and Risks

Santana emphasized that Cosmos was in its critical phase of accumulation. On the other hand, ATOM has historically formed higher long-term lows, which could be a technical indicator setting a stage for future gains.

However, accumulation comes with risks. The key level to watch would be $1.923, a low from March 2020. Should the price of ATOM go below this threshold, it would somewhat undermine the bullish narrative Santana presents.

Such a decline could be interpreted as a shift in market sentiment and would result in weaker performance compared with other cryptocurrencies.

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

Another pressure on ATOM comes from insider selling. As soon as the developers, miners, or exchanges begin to sell their holdings en masse, that usually becomes a red flag indicator of problems within the project or, at the very least, a lack of belief in its further perspective.

This might be why, in particular, Cosmos can’t hold up that well compared to other altcoins, which have been able to stay above their June 2022 lows.

Bearish Forecast And Market Sentiment

Although Santana’s sentiment is slightly overly hopeful, the market sentiment is overwhelmingly bearish. According to CoinCodex’s most recent prediction, Cosmos will lose 8.56% and its price will fall even further to $4.13 by September 15, 2024.

All technical indicators in this forecast are bearish. The Fear & Greed Index has finally reached 27, showing much fear in the market. For Cosmos, there have been nine green days during the last 30 days—out of a possible total of 30.

This translates into a positive return rate of 30%. Its current price volatility is at 11.64%, indicating a highly uncertain and risky time frame.

Well, considering the current state of the market, it may not be an ideal time to invest in Cosmos. Based on the factors mentioned above, namely the price drop forecast and the current sense of fear in the market, it would seem that caution is due.