As Bitcoin's ($BTC ) dominance in the cryptocurrency market continues to decline, falling from 58.12% on December 31 to 57.17% today, a favorable environment has emerged for altcoins. Among the notable performers in this shift are Cosmos ($ATOM ) and Celestia ($TIA ), both of which have gained significant momentum following recent breakouts.
These tokens are now nearing critical resistance levels, prompting speculation about whether further gains are on the horizon.
Cosmos (ATOM)
Cosmos (ATOM) has experienced a bullish reversal after breaking out of a descending channel near $6.73. Currently priced at $7.44, the token is approaching a horizontal resistance at $7.65. A successful breakout above this level could open the door for further price movement, with the next targets at $9.33 and $10.58, representing a potential 42% increase from its current price.
Technical indicators show a bullish divergence on the 4-hour chart, with the MACD (Moving Average Convergence Divergence) line crossing above the signal line. This suggests growing buying momentum and a shift toward bullish market sentiment.
Celestia (TIA)
Celestia (TIA) has also shown impressive strength, breaking out of a falling wedge pattern near $4.82. The token is now trading at $5.57, testing a critical resistance zone at $5.81. If Celestia manages to clear this barrier, it could set the stage for further gains, with potential upside targets at $7.62 and $9.28, representing a potential 65% increase from current levels.
The MACD on the 4-hour chart is showing growing bullish momentum, with the histogram turning positive, suggesting increased buying interest and the possibility of continued upward movement.
Outlook for Further Gains
Both Cosmos and Celestia are at key technical levels, with bullish setups supported by favorable market conditions driven by the decline in Bitcoin’s dominance. If both tokens manage to break through their respective resistance zones, they could see substantial upside potential.
However, traders should exercise caution, as a successful breakout requires sustained trading volume and broader market support. A failure to secure these conditions could result in price retracements, offering potential buying opportunities at lower levels.
