Cosmos and Polkadot Rebound on Interoperability Hopes

Cosmos (ATOM) and Polkadot (DOT), two legacy Layer-1 tokens, are rebounding after months of lagging behind the broader crypto market. The recent price recovery has sparked optimism that the interoperability narrative is gaining traction.

ATOM has staged a modest recovery from its fresh multi-month low near $1.20, with buyers pushing the price back toward $1.38. However, ATOM remains below the key resistance zone at $1.60, which previously acted as a strong support level before turning into resistance.

The RSI has recovered, indicating fading bearish momentum, while the SuperTrend has flagged a bullish signal. This could indicate the beginning of a bullish trend, but for momentum to strengthen, ATOM must reclaim $1.60 and flip it back into support.

Polkadot (DOT) is showing early signs of stabilization after finding support near the lower boundary of its long-term descending channel. The recent rebound has lifted DOT back above $0.83, suggesting buyers are gradually stepping in after weeks of sustained selling pressure.

A sustained move above $0.90 would strengthen the bullish case and increase the likelihood of a rally toward the upper boundary of the descending channel near $1.22. Until then, the broader downtrend remains intact despite the improving short-term outlook.