ATOM Declines 4% as Traders Test Vital $4 Support Threshold

ATOM Drops 4% as Crypto Markets Cool; CD20 Index Slides Amid Cautious Trading

Cosmos’ native token, ATOM, has fallen by 4% in the past 24 hours, as the brief rally seen on Thursday faded and crypto markets turned quieter heading into Friday.

Lower trading activity, partly due to the U.S. Independence Day holiday, contributed to reduced volatility across the market.

Bitcoin came close to setting a new record high on Thursday, approaching $111,000 before retreating back to $108,000. This pullback also affected altcoins like ATOM, which declined along with the broader market.

Technical Analysis: ATOM-USD

• ATOM-USD dropped $0.17 (3.95%) between 3 PM on July 3 and 2 PM on July 4, moving from $4.22 down to $4.06.
• The price trended downward after failing to maintain support at $4.17 and faced strong selling pressure near $4.09.
• Trading volume surged to 588,338 units at 7 AM on July 4, well above the 24-hour average, signaling heightened sell-side activity.
• Repeated attempts to establish a floor around $4.07 were unsuccessful, indicating continued bearish sentiment.
• Between 1:06 PM and 2:05 PM on July 4, ATOM-USD fell another $0.03 (0.61%), slipping from $4.09 to $4.06.
• A short-lived recovery attempt occurred at 1:53 PM, briefly lifting prices to $4.07, but renewed selling pressure quickly pushed the price lower again.
• The pattern of lower highs and lower lows suggests ATOM remains stuck in a downtrend, with the $4.00 support level now in focus.

CD20 Index Declines Over 2%

Meanwhile, the CD20 index, which tracks major digital assets, dropped during the same period, sliding from $1,803.70 to $1,765.27—a decrease of $38.43 or 2.13%.

The index traded within a $38.84 (2.15%) range, reflecting steady selling pressure. By 2 PM, it had reached a low of $1,764.86. Although there were brief attempts to consolidate around the $1,780 level, market sentiment remained cautious, indicating persistent weakness across the crypto market.