BeInCrypto analyzed this January 16 three digital assets that could show significant movements during the upcoming weekend. The altcoin market sentiment is torn between consolidation and the risk of correction after a week of high volatility. Aaryamann Shrivastava, technical analyst at the firm, highlights that internal factors and correlation with Bitcoin will define the direction of these assets.
On the other hand, Chiliz appears on the radar after the presentation of its ambitious 2030 roadmap. The long-term vision focuses on scaling the sports blockchain and expanding real-world adoption in global stadiums. Therefore, CHZ price could consolidate near 0.057 dollars during the next few sessions.
However, momentum indicators suggest that the asset has entered a dangerous overbought zone. Holding above the 0.053 dollar support will be key to avoid a larger drop toward 0.050 dollars soon.
On the other hand, Dash has surprised investors with a massive weekly rally of 114 percent. The asset is currently trading near the 80 dollar mark driven by renewed merchant adoption. Likewise, the integration with the Alchemy Pay platform has triggered use of the network in digital payments. However, there is a bearish divergence in capital flow that worries the most experienced traders. The risk of a correction toward 63 dollars increases if buying volume decreases drastically right now.
Mixed signals and correction risks in major Web3 projects
Likewise, Polygon presents a bleaker outlook after losing the bullish momentum that dominated last week. Although the asset rose 46 percent recently, buyer exhaustion caused a 15 percent drop. In this way, capital flows toward POL have dried up almost completely in recent sessions.
General uncertainty has forced many investors to withdraw their profits due to the fear of further declines. The 0.138 dollar support is the last technical barrier separating the asset from a deep bearish trend.
It is also important to note that the success of these projects will depend on the behavior of the leading cryptocurrencies. Therefore, if general sentiment improves, Polygon could reclaim the 0.155 dollar zone as firm support.
A sustained move toward 0.183 dollars would invalidate any thesis of a prolonged decline for the scaling ecosystem. However, the fragility of investor confidence is currently evident in most second-layer protocols. The market quickly punishes the lack of real utility and excessive speculation at this time.
Can real adoption narratives save assets from bearish volatility?
Therefore, the weekend of January 17 to 18 will be decisive in confirming the maturity of these rallies. Chiliz bets on its sports roadmap while Dash relies on its utility as a means of payment. In this way, the rotation of capital toward projects with solid fundamentals will be the dominant trend in the short term.
Nonetheless, analysts suggest that outflows could exceed inflows if Bitcoin retreats. Market liquidity becomes more selective and demanding with each significant global price fluctuation.
Finally, the technical situation of each asset reveals a constant struggle between bulls and bears. Investors should pay special attention to the mentioned resistance levels to adjust their operational strategies. Therefore, the altcoin market sentiment will continue to be the main thermometer to measure the health of the digital ecosystem. In this way, caution and hard data analysis will be the best tools to navigate this weekend. The weekly close of these coins will define their trajectory for the rest of the month of January.
