Date: Sun, February 9, 2025 | 11:20 AM GMT
The cryptocurrency market is finally seeing some relief as major altcoins are coming back on the green track today. After recent corrections triggered by the Deepseek launch and tariff-related activities by Donald Trump, which fueled bearish sentiment, many tokens are now showing signs of recovery following the 0.32% drop in BTC dominance today.
Among them, Cosmos (ATOM) and Tezos (XTZ) are making notable comebacks. ATOM has surged 8%, while XTZ is up 9%, both reclaiming key support levels after experiencing 30-day declines of over 28%, respectively.
Cosmos (ATOM)
ATOM’s daily chart highlights a falling wedge pattern that formed after a sharp rejection from the December 7 high of $10.57. The recent correction saw ATOM plummet to a low of $4.00, where it tested the lower trendline of the wedge.
However, ATOM is now rebounding to $4.66, indicating bullish momentum. The MACD is showing a bullish crossover, signaling increasing buying pressure.
If the price sustains this momentum, it could trigger a retest of the wedge’s upper resistance near $5.13. A breakout above this level could open the door for a stronger recovery towards $6.00 in the coming weeks.
Tezos (XTZ)
XTZ has also been trading within a falling wedge pattern since hitting a high of $1.90 on December 7. The latest leg of its downtrend forced the price to a critical support level of $0.71.
Following this support test, XTZ has rebounded to $0.91, showing signs of upside momentum. The MACD is turning positive, indicating a potential bullish shift.
If the price manages to break above its 200-day SMA, it could pave the way for a retest of the wedge’s upper resistance at around $1.05. A breakout from this structure would strengthen the case for a sustained recovery, potentially targeting $1.20 in the medium term.
Is a Trend Reversal on the Horizon?
Both ATOM and XTZ are demonstrating resilience at their respective support levels, hinting at the possibility of a trend reversal. However, their next moves will largely depend on the broader market, particularly Ethereum (ETH) and BTC dominance. If ETH continues its recovery and BTC dominance declines further, it could provide additional momentum for altcoins, helping ATOM and XTZ break out of their wedge patterns and confirm a bullish shift.
For now, traders should watch for key resistance levels and volume confirmation to gauge whether this recovery has the strength to turn into a full-fledged trend reversal.
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