The first half of this month has been volatile, and the remainder of January is expected to end similarly. Amidst this turbulent market, altcoins are expected to capitalize on external events to find upward momentum.
BeInCrypto has analyzed three prominent altcoins that are predicted to have major events coming up in the third week of January.
PancakeSwap (CAKE)
The price of CAKE is trading around $2.01 at the time of writing, remaining above the $1.99 support level. Recent sessions have seen significant volatility, generating negative technical signals. Unstable market sentiment and constantly changing volume make the short-term direction of CAKE quite unpredictable, causing traders to be cautious about the future prospects of PancakeSwap.
Technical indicators suggest that downside risk remains for CAKE. The Money Flow Index has fallen below the neutral threshold of 50.0, signaling increasing selling pressure from investors. This trend indicates that the price of CAKE may retest the lower support zone around $1.94 if negative sentiment continues to spread across the altcoin market in general .
Cake price analysis. Source: TradingViewHowever, key factors could still support the price of CAKE. PancakeSwap has proposed reducing the Max Supply of CAKE from 450 million to 400 million Token. This proposal has received strong support from the community and could help increase scarcity. If positive sentiment continues to spread, CAKE could recover to near $2.05 and even extend to $2.13.
Stellar (XLM)
XLM is trading around $0.215 after briefly dropping to a daily low of $0.202. The altcoin has fallen 12% in the last 24 hours due to the overall market weakness. Several technical indicators suggest XLM is in a correction phase, with the sharp decline posing a risk of further price drops for Stellar.
This downward trend emerged after the chart showed XLM had broken out of a descending triangle pattern. This pattern indicated the potential for a further 14% drop since the breakout. If selling pressure continues and XLM breaks below the $0.210 support level, the price could fall further to $0.201, or even deeper to the target zone of $0.188.
XLM price analysis. Source: TradingViewStellar may receive support as new updates are preparing to roll out on the network. The Protocol X-Ray upgrade is expected to be deployed on the mainnet this week. This upgrade focuses on improving privacy and compliance with regulations, using zero-knowledge cryptography technology. If the developer community responds positively, the decline in XLM could halt, allowing the price to recover to the $0.230 region.
Tezos (XTZ)
XTZ price has fallen 9.7% in the last 48 hours and is currently trading around $0.559 at the time of writing. The altcoin is still holding above the $0.555 support level, which has held for nearly two weeks. However, high volatility suggests Tezos is in a vulnerable short-term correction phase.
The downside risk continues to increase as the Chaikin Money Flow indicator shows Capital dominating on XTZ. Prolonged Capital typically signal the potential for further declines. If selling pressure continues and the $0.555 level is broken, Tezos could slide to $0.517, marking a more significant correction within the current market structure.
XTZ price analysis. Source: TradingViewOne positive development could come from the Tezos Tallinn upgrade, which will be rolled out this week, focusing on improving network speed, efficiency, and security. Network upgrades typically have a positive impact on investor sentiment and on-chain activity. If buying pressure returns, XTZ could defend the $0.555 level, recover to $0.626, and continue trading sideways within its familiar range.
