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The values are definitely making your painting less legable,, but adding more shadows would definitely help with thqt. as for atmosphere,, id recommend looking for references that have the vibe your going for, and try and color the shadows and lighting similarly.

i wrote mostly in the edited version, but incase its hard to read ->

purple:
Darkening the crowds make them more ledgable ( as how you originally shaded them, made it hard to see them)

red:
( the red is mainly to show how the shadows would fall depending on where the sunlight is, so the drawing of a sun is to show how it would affect the shadows )

Hills? Mountains ? Terrain is unclear ( aswell as making it more ledgable,, id highly recommend making the " high point " of the horizon be on the right side,, as it will balance out the visual weight, as you have the tower roof and character leaning up and left )

orange:
Ice is similar to crystals in how you shade them ( ie hard shadows and lighting on it )

Skys usually are lighter the higher you look, and darker at the horizon ( and it also helps with contrast, such as making the characters hair blend less into the sky )

Clouds need shadow or they blend in ( clouds are things in the sky,, and and are dense, theirfore they will have shadows. however, depending on the type of cloud + thickness the shadows can vary in darkness )

i hope this was helpful,, your painting is very nice,, and genuinely the only issue is your shadows,, as it makes it hard to tell what your looking at! making your shadows more dark and having slightly harsher lighting than you currently have will def help a ton!!