The cryptocurrency market is entering an era of uncertainty. There is no clear direction as to whether the market will have an altcoin season or not. As a result, altcoins have become more dependent on external developments and catalysts to chart the course of price movements.
BeInCrypto analyzed three altcoins with notable developments this week.
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Filecoin (FIL)
Filecoin is preparing to make a big announcement this week, but the lack of details has heightened market expectations. This news is expected to have a major impact, putting FIL at a crossroads where the token could either make a sharp recovery or extend its continued decline, depending on investor reaction.
FIL is trading at $1.99 after falling 41% in the past 10 days. The price briefly fell below $2.00, showing intense selling pressure. If this announcement sparks bullish sentiment, FIL could rebound from $2.00 and rise above $2.26 and $2.63, marking the beginning of a recovery phase.
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If sentiment turns bearish, FIL could continue to fall towards $1.68, invalidating the near-term bullish outlook. Below that level, the token could fall further towards $1.46.
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Zilliqa (ZIL)
ZIL is trading at $0.0069, just below a major resistance level, after falling 13% on the week. Parabolic SAR indicates the strength of a new uptrend, suggesting that Zilliqa could attempt a recovery if buying pressure increases and market-wide sentiment improves.
Zilliqa’s upcoming 0.19.0 mainnet upgrade will increase staker flexibility and improve network uptime. These consolidations could push the price higher towards $0.0074 as traders react to the network’s strengthened fundamentals, and potentially as high as $0.0082 if momentum holds.
If the bullish reaction fails, ZIL could fall to $0.0063, further widening the recent decline. If it falls below that level, the token could be exposed to further losses towards $0.0058, invalidating the bullish outlook and increasing downside risk for holders.
Avalanche (AVAX)
AVAX is trading at $15.61 after a month-long downtrend, while MACD is showing slight bullish momentum. This indicator prevents a bearish crossover and suggests that sellers are losing power as Avalanche attempts to stabilize above a major support level.
Avalanche’s upcoming Granite upgrade is a major step in improving network performance. This release could generate renewed interest and push AVAX above $16.25. If the momentum holds, it could rally towards $18.27 and break out of the downtrend line, indicating a stronger recovery.
The bearish mood may strengthen if market conditions weaken and AVAX falls below the $14.89 support. A decline to $13.40 would invalidate the bullish outlook and increase downside risks, especially if the upgrade fails to foster meaningful demand.
