The cryptocurrency market is showing signs of recovery following a brief downturn triggered by the recent Consumer Price Index (CPI) data release. Bitcoin (
$BTC ) dipped to $94,000 but has since rebounded above $96,000, restoring bullish sentiment across the altcoin market.
Among the notable gainers, Cosmos (
$ATOM ) and Arbitrum (
$ARB ) are making significant recoveries. ATOM has surged 7%, while ARB has risen 5%, following respective 30-day corrections of 18% and 31%.
According to data from CoinMarketCap, both tokens are currently testing key resistance levels after breaking out of falling wedge patterns, a formation typically associated with bullish reversals.
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Cosmos (ATOM) Analysis
ATOM is currently trading near $5.00, approaching a critical breakout level within its falling wedge structure. The token recently found strong support at $4.00, which aligns with the lower boundary of the wedge pattern.
Technical Outlook:
A breakout above this formation could propel ATOM toward the 200-SMA resistance level.
If this level is breached, the next target is $6.40, representing a potential 29% upside from its current price.
Momentum indicators are turning bullish, with the MACD signaling a potential crossover, indicating increasing buying pressure.
Should ATOM sustain this momentum, a confirmed breakout could mark the beginning of a broader recovery.
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Arbitrum (ARB) Analysis
ARB is exhibiting a similar pattern, currently trading at $0.49 as it nears the upper boundary of its falling wedge. The token recently found solid support at $0.38, a key level during its recent decline.
Technical Outlook:
A successful breakout from this structure could see ARB test the 25-SMA resistance level.
If price action remains strong above this threshold, the next major target is $0.65, indicating a potential 41% rally.
Momentum indicators, including the MACD, are showing early signs of a trend shift, suggesting increasing bullish pressure.
A rise in trading volume could further validate a breakout, potentially accelerating ARB’s recovery.
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Market Outlook & Next Steps
With both ATOM and ARB nearing critical breakout zones, traders should closely monitor these resistance levels. Broader market sentiment, particularly Bitcoin’s stability, will play a significant role in determining whether these tokens can sustain their bullish momentum.
Additionally, Ethereum’s price action and Bitcoin dominance will be key factors influencing market direction. If the overall market environment remains stable, ATOM and ARB could continue their upward trajectory, recovering from the losses sustained over the past month.
For now, the focus remains on whether these altcoins can successfully break through resistance and confirm a trend reversal, potentially
signaling a stronger market recovery in the near term.
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