ATOM Sinks 5% Amid Altcoin Weakness, Faces Key Support Test

Cosmos Hub’s ATOM token suffered a steep decline over the past 24 hours, falling from $5.08 to $4.82 as institutional participants intensified liquidation activity. The 5.1% drop was accompanied by a surge in trading volume, with a peak of 7.73 million tokens changing hands during a particularly heavy sell-off between 09:00 and 14:00 UTC on July 23.

The sharp move reinforced resistance around the $5.07-$5.13 range, while accumulation interest surfaced in the $4.78-$4.88 zone, offering tentative support. However, persistent breakdowns below the $5.00 threshold highlighted ongoing distribution pressure that could challenge recovery attempts without sustained buying momentum.

During the final hour of trading on July 23, ATOM experienced pronounced volatility. The price tumbled from $4.90 to a session low of $4.78 before rebounding to $4.81. This recovery, while notable, came on declining volume—potentially signaling exhaustion among short-term buyers.

Akash Network (AKT), another Cosmos-based project, continues to show strength in long-term forecasts, with a potential target of $6.19 in 2025, contrasting ATOM’s current technical fragility.

Technical Analysis Highlights

• 24-Hour Movement: ATOM fell 5.1% from $5.08 to $4.82 with a total range of $0.35 (6.8%).
• Peak Liquidation: July 23, 09:00-14:00 UTC saw volumes surge to 7.73M, well above the 1.11M average.
• Critical Support: $4.78-$4.88 zone showing accumulation on elevated volume.
• Intermediate Resistance: $4.98-$5.00 level faced multiple rejections.
• Institutional Pressure: Sustained breakdown below $5.00 signals distribution activity.
• Intraday Volatility: July 23, 13:10-14:09 UTC saw a sharp dip from $4.90 to $4.78, followed by a rebound to $4.81.
• Rebound Weakness: Recovery to $4.81 occurred on declining volume, suggesting possible exhaustion.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.