ATOM Nears Critical Resistance as Cosmos Recovers Millions in Tokens

The price of ATOM is approaching a critical resistance zone after recovering from recent lows. On the daily chart, a symmetrical triangle pattern has formed, with higher lows and a descending resistance trendline. ATOM is now near the pattern's upper boundary, with a potential breakout at $1.90. A successful move above this level could shift the short-term structure higher, while another rejection might force the token to seek support before its next attempt.

Cosmos Hub has made progress in recovering funds lost during the Neutron governance attack. A new governance proposal aims to transfer 1,227,121 recovered ATOM tokens to the Neutron Recovery multisig. This follows the September attack, where approximately 1.723 million ATOM was stolen from three Neutron contracts. The recovered tokens were secured after Cosmos Hub validators halted the network, allowing the remaining balance to be moved into a recovery multisig.

The ATOM price is currently trading around $1.80, $1.81, with the first resistance at $1.84, $1.86 and a more significant breakout area at $1.90, $1.95. A decisive daily close above the upper trendline could bring $2.00 into focus. On the downside, the immediate support zone is $1.75, $1.80, with a deeper pullback potentially targeting $1.60, $1.65.

Overall, ATOM's outlook is improving as its technical structure strengthens and Cosmos advances key recovery and governance initiatives. Successful resolution of the Neutron incident, stronger ecosystem activity, and progress on tokenomics could improve investor confidence, potentially transitioning ATOM from a recovery phase into a broader trend reversal.