The worst days for cryptocurrencies are long gone, and the market has shown signs of recovery since the November 2022 crash. However, this upward trend is not without its fluctuations. Investors in Chiliz (CHZ), Avalanche (AVAX), and Chainlink (LINK) are particularly keen to understand what levels these coins might reach next. While CHZ Coin is approaching the bottom of its channel, AVAX is grappling with maintaining its support levels amidst double-digit inflation. Meanwhile, LINK Coin, despite its long-term potential, faces its own set of challenges. So, what can investors expect in the coming days? Let's dive in.
Is Chiliz (CHZ) Coin at the Bottom?
Chiliz (CHZ) Coin has been navigating through a turbulent market, and its price is currently moving towards the bottom of its parallel channel. The interim support at $0.065 has held up, but the real bottom is at $0.059. If the CHZ Coin price continues to fall, it may find a reaction at this level. Bitcoin (BTC) has slowed its decline for now, which could provide some respite for CHZ. Losing the channel support would open the door to $0.053. In a possible reversal, the target is again the middle area at $0.071.
Technical Analysis of CHZ Coin
The technical indicators for CHZ suggest a mixed outlook. The Relative Strength Index (RSI) is hovering around the oversold territory, indicating that a bounce-back could be imminent. However, the Moving Average Convergence Divergence (MACD) shows a bearish crossover, suggesting that the downward momentum could continue.
Market Sentiment and Future Projections
Market sentiment around CHZ remains cautiously optimistic. The coin has a strong community backing, and its involvement in the sports and entertainment sectors provides a unique use case that could drive future growth. Analysts predict that if CHZ can hold the $0.059 support, it could see a rebound to $0.071 and potentially higher levels in the long term.
Avalanche (AVAX)
Before this week’s major decline, Avalanche (AVAX) fought hard to maintain $29 as support. Due to its double-digit annual inflation, AVAX did not experience as strong growth as its competitor Solana (SOL). Additionally, its community is not as robust as Solana’s, which has negatively affected its price performance, causing it to fall below $25 with the BTC decline.
AVAX's Struggle with Inflation
AVAX's double-digit annual inflation rate has been a significant hurdle. Unlike Bitcoin, which has a capped supply, AVAX's inflationary nature means that more tokens are continuously introduced into the market, diluting its value. This has made it challenging for AVAX to sustain long-term price increases.
Technical Levels to Watch
AVAX lost the parallel channel support at $31.6 and has not yet erased all its gains from last December. If it wants to return to the last point where the rise started, a new test at $22.3 is possible, but $24.5 is currently holding it. The next significant resistance level is at $29, and breaking this could pave the way for a move towards $35.
Community and Ecosystem Developments
Despite its struggles, AVAX has a growing ecosystem. The Avalanche network continues to attract new projects and developers, which could provide a long-term boost to its value. The upcoming upgrades and partnerships are expected to enhance its scalability and usability, making it a more attractive option for investors.
Chainlink (LINK) Coin Commentary
Chainlink (LINK) has been a standout performer in the cryptocurrency market, known for its robust technology and strong community support. The price, recovering from the $12.6 support, is now lingering at the $13 threshold. In the long term, LINK Coin is a potential cryptocurrency, and its steps in the Real-World Asset (RWA) field have brought loyal investors. However, downturn periods are still challenging. Here, the parallel channel support at $12 is a possible test point.
LINK's Technological Edge
Chainlink's technology, particularly its decentralized oracle network, sets it apart from many other cryptocurrencies. This technology allows smart contracts on various blockchains to securely interact with external data sources, APIs, and payment systems, making it an essential component of the DeFi ecosystem.
Key Support and Resistance Levels
If LINK falls below the $12 support, $10.7 will take on the role of main support. A long lower wick may form here during the decline, indicating strong buying interest at these levels. On the upside, breaking above $13 could see LINK targeting $15 and beyond.
Long-Term Potential
Despite the short-term challenges, LINK's long-term potential remains strong. Its involvement in the RWA field and continuous technological advancements make it a promising investment. Analysts believe that as the DeFi space grows, so will the demand for Chainlink's services, driving its price higher.
Market Overview and Future Outlook
The cryptocurrency market has always been volatile, and the recent recovery is no exception. While the worst days seem to be behind us, the road to sustained growth is fraught with challenges. The performance of individual coins like CHZ, AVAX, and LINK will depend on various factors, including technological developments, market sentiment, and broader economic conditions.
Bitcoin's Influence
Bitcoin's performance continues to have a significant impact on the broader cryptocurrency market. As the leading cryptocurrency, its price movements often dictate the direction of other coins. The recent stabilization of BTC has provided some relief, but any significant downturn could again trigger a sell-off in altcoins.
Regulatory Environment
The regulatory environment remains a critical factor for the cryptocurrency market. Governments and regulatory bodies worldwide are increasingly focusing on cryptocurrencies, and any adverse regulations could impact market sentiment and prices. Investors should keep an eye on regulatory developments to make informed decisions.
Technological Advancements
Technological advancements and innovations will continue to drive the cryptocurrency market. Projects that can offer unique solutions and real-world applications are likely to attract more investors. Coins like LINK, with its decentralized oracle network, and AVAX, with its scalable blockchain, are well-positioned to benefit from these advancements.
Investor Sentiment
Investor sentiment plays a crucial role in the cryptocurrency market. Positive news, such as new partnerships, technological upgrades, or favorable regulations, can drive prices higher. Conversely, negative news can lead to sharp declines. Staying informed and understanding market sentiment can help investors navigate this volatile market.
Conclusion
The cryptocurrency market has shown resilience and signs of recovery since the November 2022 crash. While CHZ, AVAX, and LINK face their own set of challenges, they also have significant potential for growth. Investors should keep an eye on key support and resistance levels, technological developments, and market sentiment to make informed decisions. As always, diversification and a long-term perspective can help mitigate risks in this volatile market.
The post first appeared on COINTURK NEWS: Cryptocurrencies Recover After November 2022 Crash
