Altcoin Season Fades: ATOM Declines Amid Renewed Bitcoin Strength

Bitcoin Reclaims Spotlight as ATOM Drops 5% Amid Fading Altcoin Momentum

The recent altcoin surge is beginning to wane, with market focus shifting back to Bitcoin. Cosmos’ ATOM token led the latest retreat, falling 5% over the past 24 hours as traders pivoted toward large-cap assets.

After peaking at $5.26, ATOM slipped to $4.98 between July 21 at 11:00 UTC and July 22 at 10:00 UTC. Attempts to break above $5.32 failed, triggering a wave of sell orders. Trading volume surged to 1.79 million tokens at 16:00 UTC, signaling heavy liquidation and a clear rejection at resistance.

The token briefly stabilized around $4.97, where renewed buying pushed ATOM into a tight consolidation range between $4.95 and $5.05. A small bounce lifted prices back to $4.99, but sentiment remains cautious amid macro headwinds and Bitcoin’s renewed dominance.

This week’s action highlights a cooling in the altcoin cycle, with Bitcoin reasserting control over market flows after several weeks of outperformance from mid-cap tokens like ATOM.

Technical Snapshot

• 24-Hour Drop: 5%
• Resistance Zone: $5.25–$5.32
• Support Zone: $4.93–$4.97
• Selloff Volume Peak: 1.79M tokens
• Consolidation Range: $4.95–$5.05
• Market Signal: Higher lows suggest possible bottoming, but confirmation is needed