- Analysts forecast Avalanche (AVAX) to reach $60 by year-end under a bullish scenario, while a bearish outcome could see it drop to $35.
- Despite liquidity concerns, Chainlink maintains strong support at $23 and shows bullish reversal patterns.
The crypto market took a hit after the Federal Open Market Committee announcement on interest rate cuts recently. Blockchain analytics firm Santiment highlighted the unease among traders as Avalanche (AVAX), Chainlink (LINK), Litecoin (LTC), and Pepe Coin (PEPE) emerged as top losers. However, the firm noted that it is not the immediate rate cuts that are causing a fuss but rather Federal Reserve Chair Jerome Powell’s projection for 2025.
“Powell’s forecast of fewer-than-expected rate cuts in 2025 has left both crypto and equity traders feeling apprehensive,” Santiment wrote on X.
Earlier in the day, Avalanche’s price sank 16%, with Chainlink, Litecoin, and Pepe dropping similarly. Santiment said, “If this was indeed an overreaction, there is a decent chance that the projects with the biggest drops will be the ones worth taking the biggest dip-buy chances on.”
Avalanche Price Outlook
Despite the market pullback, Avalanche remains a focal point for investors. Trading around $42.35, dropping by 9.11% with a market cap of $17.33 billion, the asset shows resilience despite market weakness. It has managed to maintain a key support level above $42, signaling potential stability.
A recent analysis revealed that Avalanche had the potential to rebound greatly, supported by its increasing participation in decentralized finance (DeFi) and blockchain development. AVAX’s forecast has a value of $60 at the end of 2024, given that the trend will remain bullish, reported CNF. However, a bearish scenario would place it at $35, while an average value is projected to be around $47 by year-end.
Nonetheless, looking into 2025, Avalanche’s price could range between $44 and $81, driven by its expanding ecosystem. Meanwhile, market indicators such as the Fear & Greed Index, which currently reads 69, suggest strong investor confidence despite recent volatility.
Chainlink Price: Whale Activity Raises Questions
Chainlink is also seeing its fair share of volatility with the large-scale whale activities. In the last three days, a large holder has withdrawn more than 529,000 LINKs worth $15.5 million from Binance, reported CNF. In the latest transaction, 100,000 LINKs, which are valued at $2.95 million, were transferred.
Such large withdrawals usually decrease the market’s 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. This level has been tested several times and still holds.
Technically, Chainlink is displaying bullish reversal patterns in the form of three consecutive rounded bottoms, showing increased buying pressure. If LINK maintains its support, a potential breakout could push its price toward the $35 resistance zone.
