The price of ATOM is approaching a crucial resistance area after bouncing back from recent lows. This recovery has formed a symmetrical triangle on the daily chart, with higher lows meeting a descending resistance trendline. ATOM is now near the upper boundary of the pattern, potentially setting up for a breakout above $1.90. A successful move past this level could signal a bullish trend, while a rejection could lead to a search for support before another breakout attempt.
Cosmos Hub Advances 1.2M ATOM Recovery
Cosmos Hub has made progress in recovering funds lost in the Neutron governance attack. A new proposal aims to transfer 1,227,121 recovered ATOM from the Cosmos Hub multisig to the Neutron Recovery multisig. This follows an attack in September that resulted in approximately 1.723 million ATOM being drained from three Neutron contracts.
The recovered tokens were secured when Cosmos Hub validators stopped the network as the stolen ATOM reached a Hub address. The remaining balance was then moved to a 4-of-6 recovery multisig through a state change. The proposal would allow the multisig signers to transfer the recovered balance, minus network fees, to the Neutron recovery multisig via IBC. Subsequent steps would involve Neutron governance returning the funds to the affected contracts.
This development coincides with ATOM’s attempt to reach higher levels, providing a positive catalyst for the market as the token nears a significant technical resistance.
ATOM Price Analysis: Symmetrical Triangle Puts $1.90 in Focus
ATOM’s price is consolidating around a key level. After dropping to the $1.30–$1.40 range, ATOM started forming higher lows, with subsequent recovery attempts establishing the rising side of the pattern. Simultaneously, lower highs have created a descending upper trendline.
ATOM is currently trading around $1.80–$1.81, near the upper boundary. The first resistance levels are $1.84–$1.86, with the more significant breakout zone at $1.90–$1.95. A clear daily close above the upper trendline would strengthen the bullish outlook and target $2.00. The $2 level also represents a major resistance area, requiring sustained buying pressure for a successful breakout.
To the downside, support is crucial in the $1.75–$1.80 range. Breaking below this level could weaken the structure and push ATOM towards the lower trendline, with $1.60–$1.65 becoming relevant on a deeper pullback.
Final Outlook
ATOM’s overall outlook is improving with a strengthening technical structure and advancements in Cosmos’ recovery and governance efforts. Resolving the Neutron incident, increased ecosystem activity, and progress in tokenomics could boost investor confidence. If these factors align with continued buying momentum, ATOM may transition from recovery to a broader trend reversal.
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