ATOM Drops 5% as Altcoin Rally Cools and Bitcoin Reclaims Market Leadership
The recent surge in altcoin activity appears to be losing steam, with Bitcoin reasserting dominance across the crypto market. Cosmos’ ATOM token fell 5% over the past 24 hours, signaling a broader shift in momentum away from mid-cap assets.
After leading gains during last week’s altcoin rally, ATOM is now retreating as traders rotate back into Bitcoin. The token declined from $5.26 to $4.98 between July 21 and July 22, facing strong resistance at the $5.25–$5.32 range.
Sell pressure intensified around 15:00 UTC, triggering a volume spike of 1.79 million tokens and confirming a technical breakdown. Despite briefly stabilizing near $4.97, ATOM remained trapped in a narrow trading band between $4.95 and $5.05. A modest bounce lifted the price to $4.99, though follow-through buying has been limited so far.
The move highlights a market-wide rotation out of altcoins, as Bitcoin regains investor focus. Analysts point to recent trading behavior as evidence of consolidation, suggesting a potential pause or reset before the next directional move.
Key Technical Takeaways:
- Price Decline: ATOM down 5% from $5.26 to $4.98
- Resistance: Strong selling at $5.25–$5.32
- Support: Temporary base found at $4.93–$4.97
- Volume Spike: 1.79M tokens traded during key selloff
- Consolidation Zone: $4.95–$5.05 range
- Early Recovery Signal: Higher low forming from $4.93 to $4.98
