Altcoins to Watch Amid US Government Shutdown: TRX, AAVE, and LINK
The United States government is currently experiencing its largest federal shutdown in over six years. This situation raises questions about how the crypto market will react. This article analyzes three altcoins, Tron (TRX), Aave (AAVE), and Chainlink (LINK), that stood out during the 2018 shutdown and examines their potential performance this time around.
Tron (TRX)
Seven years ago, Tron (TRX), despite possessing a $4.6 billion market capitalization, wasn't a top 10 cryptocurrency. During the previous US government shutdown, TRX experienced a significant decline, falling 17% in 24 hours due to negative market sentiment. This time, the broader crypto market demonstrates greater resilience, with a recent $66 billion increase in total market capitalization signaling improved investor confidence.
Currently, Tron's price is around $0.338, with potential to surpass the $0.345 resistance level. Continued momentum could lead to further gains. Even if bullish momentum slows, the altcoin is expected to maintain support above its current level.
Source: TradingView via BeInCrypto
Aave (AAVE)
Aave (AAVE) mirrored Tron's reaction during the previous US government shutdown, with a near 20% drop in one day. However, the current crypto market is more mature. The Chaikin Money Flow (CMF) indicator shows strong capital inflows into AAVE, potentially offsetting bearish sentiment from political uncertainty.
Source: TradingView via BeInCrypto
If momentum is sustained, AAVE could rise toward the $300 range, contingent on breaking the $295 resistance. Conversely, negative sentiment could lead to a drop below the $277 support, potentially dragging the price to $259 or lower, which would invalidate the bullish outlook.
Chainlink (LINK)
Six years ago, Chainlink (LINK) ranked 87th among the top 100 crypto assets, with a market capitalization of around $310 million. Today, LINK has a $15 billion valuation. During the 2018 shutdown, LINK fell by 22%. However, current indicators, such as a potential bullish crossover on the MACD, suggest strengthening momentum.
Source: TradingView via BeInCrypto
This technical signal opens an opportunity for LINK to avoid a similar decline as before and instead maintain an upward trend in the short term. Should the bullish trend accelerate, LINK could break $23.4, targeting $25.81 resistance. If market sentiment turns negative, LINK could correct to $19.91 or even $17.31.
