After a sustained rise, cryptocurrencies are entering another period of pause, with even bull seasons experiencing corrections. The focus is on the predictions for popular cryptocurrencies AVAX and SEI.
At the time of writing, AVAX is priced at $31, a critical support level that has been breached as Bitcoin falls below its $40,400 support, prompting altcoin investors to secure their gains. This has led to a cumulative market value drop to $1.58 trillion.
AVAX’s inability to hold its support could see prices fall to $21 if the downtrend continues. Closures below $31.5 could pave the way for further declines. Conversely, if the $35 region becomes supportive again, prices could recover to $41 and $50, though market sentiment currently indicates a downward trend with less resistance.
In January, altcoins saw massive peaks with the cumulative value of cryptocurrencies reaching $1.8 trillion. SEI Coin hit its all-time high at $0.88 but formed a double top, indicating a potential reversal. The coin is now at a $0.63 Fibonacci support level, and a continued decline could lead to a 23% loss at $0.47, while a strong rebound could retest the all-time high region with a 40% increase. However, the current environment does not seem favorable for such a strong recovery rally.
Overall, the cryptocurrency market is experiencing a downturn, with AVAX and SEI Coin investors closely watching for potential support levels and market sentiment to gauge future price movements.