This week, the global crypto market faced a decline, marking a total cap drop to $1.55 trillion and a volume decrease to $68.8 billion. Factors contributing to this downturn include the cautious approach of investors amidst economic uncertainties and the anticipation of the Federal Reserve meeting, impacting major players like Bitcoin and Ethereum.
Interestingly, on December 12, certain altcoins showed resilience amid this slump. Polkadot (DOT) experienced double-digit gains, and Avalanche (AVAX) not only surpassed Dogecoin (DOGE) in market capitalization but also doubled its price within a month. However, both DOT and AVAX are now undergoing price corrections, decreasing by 5% and 10%, respectively, creating an uncertain environment for investors.
Technical analysis of Avalanche (AVAX) reveals its recent surge above the $25 resistance zone, marking a 50% gain. Despite breaking key levels around $30 and reaching above $40 before encountering a bearish trend, AVAX currently trades between $25.87 and $43.18. Technical indicators offer mixed insights, suggesting a bullish trend in the short term but with some potential undervaluation.
Polkadot (DOT) finds itself in a crucial zone between $5.94 support and $8.21 resistance. Despite recent positive developments like its listing on the HashKey Exchange and a partnership with Deloitte, technical indicators present a complex view. While some aspects hint at a neutral stance, others lean slightly towards a bearish outlook.
The market’s erratic behavior signifies investor caution amid economic uncertainties. Although Polkadot (DOT) and Avalanche (AVAX) have demonstrated strength, their ongoing corrections underscore the inherent volatility of crypto investments.
