Crypto analyst Alan Santana has shared his in-depth analysis regarding Cosmos (ATOM) and its further price action. In his analysis, Santana believes that the current market conditions offer a huge opportunity for long-term investors.
Currently, ATOM is trading at a notable discount compared to its earlier highs. Since May 2019, the cryptocurrency has charted a path, showcasing what potential it had. Recent drops have seen ATOM remain an interesting investment due to the low current price of this cryptocurrency, which presents an attractive entry point to people who have a bullish outlook.
Cosmos (ATOM) Accumulation Phase
Santana emphasizes the importance of Cosmos currently being in a critical accumulation phase. The price action has historically developed long-term higher lows, which indicates that the current correction can set the scene for further future gains. But there is one risk: if Cosmos does slide to new long-term lows, it’ll knockout a key aspect of the bullish narrative, and see weaker performance relative to other cryptos.
The key low to watch is $1.923 from March of 2020. If the price can trade below this level, it may signal a change in market characteristics. That said, the chart remains posting long higher lows, which suggests upside potential.
Insider selling is one of the factors responsible for Cosmos’s recent decline. If a project’s developers, miners, or exchanges sell their holdings, then it usually is indicative of some underlying problem or just a lack of belief in the project. This insider activity might be one reason ATOM trades well below its June 2022 low, unlike other altcoins that hold up strong.
Cosmos (ATOM) Potential: Aiming for a 10x Return
The all-time high for Cosmos stands at $44.7, whereas the current price stands at $4.7, suggesting a possible 10x return if the price revisits its peak. Additionally, even if Cosmos itself does not hit a new all-time high in 2025/26, there are enormous profit opportunities that exist. A modest achievable target of $40-$55 could represent significant gains, especially from a low of $1.5.
Santana suggests patience: wait for the market to crash and then enter the current accumulation zone. Once this zone is active, buying and holding could be the right way to go in pursuit of long-term gains. With the hiccups presently happening, Cosmos holds great potential for huge returns and might be a good candidate for investors who can stomach short-term volatility.
ATOM presents an interesting case for investors. With the possibility of future highs and significant long-term potential, it’s a cryptocurrency that could remain in the running. However, due diligence is important, particularly against the backdrop of insider selling and current market conditions.
Related Reading | Ethereum Turns Inflationary for the First Time Since 2022: What’s Behind the Shift?
