DOT and ATOM on the Verge of Key Breakouts – Are Upside Moves on Horizon?

Date: Wed, February 19, 2025 | 03:04 PM GMT

In the cryptocurrency market today, major altcoins are making a notable recovery after experiencing a sharp decline yesterday. Among them, Polkadot (DOT) and Cosmos (ATOM) are showing signs of recovery after enduring a 30-day correction of over 25%.

Source: Coinmarketcap

Both tokens are now trading near key resistance levels and could be on the verge of breakouts.

Polkadot (DOT)

DOT is currently forming a falling wedge pattern, a typically bullish structure that often signals a potential breakout. The price recently bounced off the lower trendline support near $3.76 and is now trading at $4.82, nearing both the wedge’s upper resistance and the 15-day simple moving average (SMA).

Polkadot (DOT) Daily Chart/Coinsprobe (Source: Tradingview)

If DOT manages to break out of this formation and confirm the breakout with a successful retest, it could see a move toward its next resistance levels at $6.49 and $7.58. This would represent a significant upside of nearly 60% from its current price.

Cosmos (ATOM)

Similarly, ATOM is trading at around $4.64 and is approaching a critical breakout point within its falling wedge pattern. The token found strong support at $4.00, which aligns with the lower boundary of the wedge, reinforcing its potential for an upward move.

Cosmos (ATOM) Daily Chart/Coinsprobe (Source: Tradingview)

If ATOM successfully breaks above the formation with a retest, its next challenge will be overcoming the 200-day SMA resistance. A decisive move past this level could push ATOM toward the $6.40 mark, offering a potential 38% gain from its current price.

What’s Next?

With both DOT and ATOM nearing crucial breakout levels, traders should keep a close watch on these zones. However, the broader market conditions will play a significant role in determining their next moves. Bitcoin’s strength, Ethereum’s price action, and overall market sentiment will be key influences on whether DOT and ATOM can sustain an upward trajectory.

If the crypto market remains stable and bullish momentum builds, both tokens could recover from their recent losses and move toward their respective resistance targets.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions in cryptocurrencies.