- Analysts expect Avalanche (AVAX) to reach $60 by the end of the year in a bullish scenario, while in a bearish scenario it could drop to $35.
- Despite liquidity concerns, Chainlink holds strong support at $23 and shows bullish reversal patterns.
The cryptocurrency market took a hit after the Federal Open Market Committee announced an interest rate cut. Blockchain analytics firm Santiment highlighted trader distress as Avalanche (AVAX), Chainlink (LINK), Litecoin (LTC), and Pepe Coin (PEPE) were the top losers. However, the firm noted that it is not the immediate rate cuts that are creating a stir, but rather Federal Reserve Chairman Jerome Powell’s projections for 2025.
“Powell’s prediction of fewer rate cuts than expected in 2025 has left both cryptocurrency and stock traders apprehensive,” Santiment wrote on X.
Earlier in the day, Avalanche’s price plummeted 16%, while Chainlink, Litecoin, and Pepe suffered similar declines. Santiment said: “If this was an overreaction, the projects that suffered the biggest declines are likely to be the ones worth making the biggest purchases on.”
Avalanche Price Outlook
Despite the market downturn, Avalanche remains a point of reference for investors. Trading around $42.35, a decline of 9.11% and a market capitalization of $17.33 billion, the asset shows some resistance despite the market weakness. It managed to hold a key support level above $42, signaling potential stability.
Recent analysis revealed that Avalanche has the potential for a strong rebound, supported by its growing participation in decentralized finance (DeFi) and blockchain development. AVAX forecast has a value of $60 at the end of 2024, as the trend will remain bullish, CNF reports. However, a bearish scenario would place it at $35, while an average value is expected around $47 by the end of the year.
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However, looking to 2025, Avalanche’s price could range between $44 and $81, thanks to the expansion of its ecosystem. Meanwhile, market indicators such as the Fear & Greed Index, which currently stands at 69, suggest strong investor confidence despite recent volatility.
Chainlink Price: Whale Activity Raises Questions
Chainlink is also experiencing its share of volatility with large-scale whale activity. In the last three days, a large holder has withdrawn more than 529,000 LINKS worth $15.5 million from Binance, as reported by CNF. In the latest transaction, 100,000 LINKS were transferred, worth $2.95 million.
Such large withdrawals usually decrease market liquidity, leading to speculation about the whale’s intentions. Analysts perceive this movement as a positioning signal, considering Chainlink’s strong support level at $23, a level that has been tested several times and still resists.
From a technical perspective, Chainlink is showing bullish reversal patterns in the form of three consecutive rounded bottoms, showing increased buying pressure. If LINK holds its support, a potential breakout could push the price towards the $35 resistance zone.
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