As the weekend approaches, altcoins are exhibiting increased signs of weakness, influenced by negative macroeconomic data and discussions of persistent inflation at Davos. This global inflation battle could pressure risk markets in the first half of the year. Bitcoin (BTC), remaining below a significant threshold, contributes to the altcoins’ frailty.
Solana (SOL) has dipped below $100 but maintains its upward trend line, with critical support at $97.6. Despite recent sell-offs, the outlook isn’t entirely negative unless the trend line is lost, which could see new lows between $87.6 and $58. In a bullish scenario, $111 is the next target.
Investors are nervous as BTC broke down from a rising parallel channel on January 12, but the market has not yet seen extreme sell-offs, indicating that ETF excitement, while diminished, still keeps the market buoyant.
Avalanche (AVAX) has failed to overcome the $50 resistance and lost the middle line of its channel, suggesting a potential test of the $31.5 support. A close below $35 could significantly harm bullish prospects.
Two scenarios are presented: AVAX could rebound from base support targeting $43 and $50 resistances or fall to the $22.6 area where the rapid rise began. With the cumulative value of cryptocurrencies potentially retracting to $1.4 trillion, a bearish outcome could be in store for AVAX, and the narrative supports a possible interim correction for BTC, with a significant $49,000 peak possibly leading to an expected pre-halving correction in the $35,000-$37,000 range.