The cryptocurrency market has experienced significant downturn recently, with Bitcoin (BTC) and Ethereum (ETH) suffering notable losses in a broader selloff triggered by global economic uncertainty. This volatility extends to altcoins as well, notably affecting Cosmos (ATOM). However, an optimistic pattern is emerging that suggests a potential comeback for ATOM, mirroring the trajectory of Solana (SOL). [Source: CoinMarketCap]** Cosmos (ATOM) Price Chart
The daily chart shows ATOM forming an inverse head and shoulders pattern, often considered a bullish reversal signal. This pattern closely resembles what Solana (SOL) experienced in late 2024 before its impressive rally. Solana’s breakout was characterized by breaking out of a multi-month inverse head and shoulders pattern, followed by a decisive rise after overcoming resistance at the neckline. ATOM is now following a similar structure. After bouncing off its second shoulder, it’s testing the neckline just above $5.00, and also testing its 50-day moving average, mirroring Solana’s behavior prior to its breakout. **If ATOM breaks above the neckline resistance with strong volume, a bullish reversal could unfold, potentially targeting the $5.80 to $6.40 range in the short term
**What’s Next for ATOM?**. Despite these technical signals, macroeconomic headwinds remain a significant factor.** However, as historical price patterns can often precede sentiment shifts, ATOM’s potential comeback could be worth watching closely. Traders and investors should pay close attention to any breakout confirmation in the coming days. **This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.** Also Read: Is Bitcoin Cash (BCH) Gearing Up for a Mega Rally? Chart Mirrors 2021 Bull Run Setup