The second half of January 2026 maintains intense volatility in the general crypto market. According to analysis by Aaryamann Shrivastava, three altcoins to watch this week depend on critical external developments to reverse their current bearish trends in the coming days.
PancakeSwap (CAKE) trades near $2.01 with negative technical signals and increasing selling pressure. However, a fundamental proposal seeks to reduce its maximum supply from 450 to 400 million tokens. This measure has strong community support and could generate the necessary scarcity to boost a rebound towards the $2.13 level.
On the other hand, Stellar (XLM) suffered a sharp 12% drop in 24 hours, breaking a key technical pattern on the chart. The asset risks falling an additional 14% towards $0.188 if it loses its current support. Nevertheless, the imminent launch of the Protocol X-Ray upgrade on the mainnet could introduce crucial privacy improvements and reverse negative momentum.
Likewise, Tezos (XTZ) faces dominant capital outflows, endangering its critical $0.555 support after falling nearly 10%. Hope rests on the Tallinn upgrade, scheduled for implementation this week. This development focuses on improving speed and security, which could attract bullish interest to defend key price levels.
Reliance on external catalysts defines the immediate course of these digital assets
These price movements occur in a broader context of widespread uncertainty in the market. Technical indicators reinforce downside risks for most assets, including these altcoins to watch this week. However, the scheduled fundamental events act as potential counterweights to prevailing technical weakness.
In fact, the investment community is closely watching these specific developments in search of recovery signals. In an environment of high instability, network upgrades and governance proposals have the potential to redefine short-term trajectories. Thus, fundamentals attempt to prevail over general market selling pressure.
Will these technical and governance upgrades be able to save the tokens from further drops?
The coming week will be decisive in determining if fundamentals can overcome accumulated negative technical pressure. If positive sentiment derived from these events prevails, these cryptocurrencies could initiate important recoveries from their current danger zones.
Finally, while indicators suggest caution and potential re-tests of lower supports, the upgrades offer a window of opportunity. Traders will need to closely monitor market reaction to these specific events to adjust their trading strategies with these altcoins to watch this week.
