ATOM Drops 4% as Bears Set Their Sights on Key $4 Support Zone

ATOM Slides 4% as Crypto Rally Fizzles; CD20 Index Drops Amid Weak Market Sentiment

Cosmos’ native token, ATOM, fell 4% over the past 24 hours, reflecting the abrupt end of Thursday’s short-lived crypto rally as markets cooled on Friday.

Market activity remained subdued, partly due to the U.S. Independence Day holiday, which contributed to lower volatility.

Bitcoin came close to setting a new record high on Thursday but fell short, retreating from $111,000 to $108,000. Altcoins, including ATOM, followed suit, echoing the broader market’s pullback.

Technical Analysis: ATOM-USD

ATOM-USD saw a sharp decline of $0.17 (3.95%) between July 3 at 15:00 and July 4 at 14:00, with prices dropping from $4.22 to $4.06.
A clear downtrend formed after ATOM failed to hold support at $4.17, encountering heavy selling pressure around the $4.09 level.
Trading volume surged to 588,338 units at 7:00 on July 4—well above the 24-hour average—indicating intensified selling activity.
Multiple attempts to establish support near $4.07 were unsuccessful, signaling ongoing bearish momentum.
In the 60-minute window from July 4 at 13:06 to 14:05, ATOM-USD fell an additional $0.03 (0.61%), dropping from $4.09 to $4.06.
A brief recovery attempt occurred at 13:53, with prices touching $4.07, but buying momentum quickly faded as sellers returned.
The continued pattern of lower highs and lower lows underscores the prevailing bearish trend as ATOM edges closer to the critical psychological support at $4.00.

CD20 Index Declines Over 2%

The CD20 index, which tracks a basket of major digital assets, registered a significant decline over the same period, dropping from $1,803.70 to $1,765.27—a loss of $38.43 or 2.13%.

The index fluctuated within a range of $38.84 (2.15%), highlighting persistent selling pressure. Downward momentum accelerated in the final hours of trading, pushing the index to a low of $1,764.86 by 14:00. Despite brief efforts to consolidate around the $1,780 mark, market sentiment remains cautious, signaling broader weakness across the crypto space.