ATOM’s Recovery Kicks Off With a Classic Pattern – Will TAO Follow the Same Path?

Date: Sat, March 22, 2025 | 05:26 PM GMT

The crypto market is showing minor signs of a rebound as Ethereum (ETH) bounces back with a 3% weekly gain, while a 0.71% decline in BTC dominance has given altcoins some breathing room after months of selling pressure. As sentiment gradually improves, altcoins like Cosmos (ATOM) and Bittensor (TAO) are starting to stir as well.

ATOM has already initiated its impressive recovery, surging 41% from its recent low of $3.39, completely erasing its 30-day decline and now trading in the green. Meanwhile, TAO, which has faced a sharp drop over the past month, is showing early signs of a potential rebound.

Source: Coinmarketcap

Cosmos (ATOM)

On the weekly chart, ATOM has formed a double-bottom pattern, a classic reversal setup often signaling the end of a downtrend. This structure began forming after ATOM failed to break above the $10.67 resistance in early December 2024, leading to a sharp drop that saw the token revisit its long-term support at $3.50 twice—once in January and again in March 2025.

Cosmos (ATOM) Weekly Chart/Coinsprobe (Source: Tradingview)

With this pattern now in place, ATOM has rebounded to $4.93, showing early signs of a shift in momentum. Adding to the bullish case, the MACD indicator is on the verge of a bullish crossover, which, if confirmed, could signal a continuation of the uptrend.

The next major hurdle for ATOM lies at the 25-week moving average (MA). A breakout above this level could trigger a sustained rally toward the $10.67 neckline resistance. If ATOM successfully clears this level, it could pave the way for a move toward the $14+ zone, potentially offering a substantial upside for traders.

Bittensor (TAO) – Mirroring ATOM’s Recovery?

TAO appears to be following a similar trajectory, forming a double-bottom structure after failing to break above the $743 resistance in December 2024. Since then, it has undergone a prolonged decline, reaching its second bottom at $212 before bouncing back to its current level of $252.

Bittensor (TAO) Weekly Chart/Coinsprobe (Source: Tradingview)

Buyers have stepped in to defend this level, leading to a bounce to current price of $252, suggesting that selling pressure may be easing. If TAO follows the same trajectory as ATOM, a continuation of this rebound could push it toward the key resistance levels ahead.

TAO’s MACD indicator also suggests an upcoming bullish crossover, aligning with the potential for further gains. If this trend holds, TAO could attempt to reclaim the $743 neckline resistance, mirroring ATOM’s current move.

What’s Next for ATOM TAO?

With ATOM already kickstarting its recovery, bullish momentum is beginning to build. If it can sustain this rally above key resistance levels, it may confirm a trend reversal, leading to further gains.

TAO, on the other hand, is still in the early stages of a potential reversal. While it has bounced off support, it has yet to confirm a strong breakout. If it follows ATOM’s path, it could gain momentum in the coming weeks, but confirmation is still needed.

Both tokens are showing promising reversal patterns, but broader market conditions—especially ETH’s ability to sustain its recovery—will play a crucial role in their next moves.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.