ATOM is approaching a critical resistance zone after recovering from recent lows. The price action has formed a symmetrical triangle on the daily chart, with higher lows meeting a descending resistance trendline. The token is currently trading around $1.80–$1.81, near the pattern's upper boundary.
Immediate resistance sits at $1.84–$1.86, with $1.90–$1.95 representing the more significant breakout area. A decisive daily close above the upper trendline would target $2.00, where the next major resistance region is located. On the downside, $1.75–$1.80 represents the immediate support zone to defend.
Recovery Efforts Advance
Cosmos Hub has moved forward with a new governance proposal to authorize transfer of 1,227,121 recovered ATOM tokens to the Neutron Recovery multisig. This follows the September attack in which approximately 1.723 million ATOM was drained from three Neutron contracts.
When stolen ATOM reached a Hub address, Cosmos Hub validators halted the network and subsequently restarted it with a state change that moved the remaining balance into a 4-of-6 recovery multisig. The proposal would allow multisig signers to transfer the recovered balance through IBC to the Neutron recovery multisig, with the next stage handled through Neutron governance to return funds to affected contracts.
Outlook
ATOM's technical structure is strengthening as its broader outlook improves with ecosystem recovery initiatives advancing. Successful resolution of the Neutron incident and continued governance progress could support investor confidence in the token's recovery phase.
