AVAX and DOT: Altcoin Analysis for January 10, 2024
Yesterday, Bitcoin experienced exceptional volatility due to fake news about ETF approval, fluctuating between $48,000 and $45,000 within an hour. The situation on the BTC chart has since stabilized. Here's a detailed analysis of the market conditions for the alternative cryptocurrencies Avalanche (AVAX) and Polkadot (DOT) as of Wednesday, January 10.
Avalanche (AVAX)
The overarching trend for AVAX remains bullish. Despite this, the corrective phase that began on December 25 continues, marking a 35% decline from its high of $50.
Currently, AVAX is trading within a range, bounded by support at $31.0-$33.4 and resistance at $37.0-$39.6. A failure to hold this support could lead to further declines, with potential dips to $29.0 and $25.1-$27.9.
Conversely, a breakthrough above the current resistance level could signal a continuation of the upward trend, with new resistance zones at $42.1-$45.0 and $47.0.
AVAX chart on the H4 timeframe
Polkadot (DOT)
DOT's market trend is somewhat similar to Avalanche. After reaching its yearly peak at $9.59, it entered a correction phase, currently exceeding a 25% drop.
Recently, DOT has been trading in a flat range, with its lower boundary around $6.35-$6.85 and upper resistance near $7.50-$8.00. A sustained sell-off could push the asset down to new local lows at $5.90 and $5.46.
DOT's growth trajectory is likely to be influenced by BTC's chart movements. Without major corrections in Bitcoin, DOT could challenge its current resistance levels and potentially reach seller zones at $8.46 and $8.75-$9.20. Attaining a new yearly high for DOT currently appears to be a less likely scenario.
DOT chart on the H4 timeframe
The upcoming decision on the Bitcoin ETF in the US is anticipated to bring significant market movements. Given the expected volatility, traders might consider cautious trading during this period.
Check out GN Crypto for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) β a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) β the price movement between support and resistance levels, without going beyond the given range.
Π β simplified designation of one thousand dollars of the asset price (for example, 23.4K β $23,400).
Gray range on the chart β a support zone.
Red range on the chart β a resistance zone.
Correlation β the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
