Popular cryptocurrency analyst and trader Michaël van de Poppe is exploring what’s in store for one of the top Ethereum competitors next year.
In a new strategy session, the crypto analyst tells his 155,000 YouTube subscribers that both Avalanche (AVAX) and fellow layer-1 smart contract platform Solana (SOL) have grown in popularity this year as competitors to Ethereum (ETH).
Looking closer at AVAX, the trader digs into possible entry points as the smart contract platform is down over 45% from its all-time high of $144.96.
“When we come to potential entry points, we can also start deriving that based on the previous price action.
So if AVAX is going all the way back towards $55 and the previous high, that is still a bullish outcome, and it’s not weird to expect a retrace taking place all the way to there [$55] before we’re going to have a reversal, as usually those levels are getting a test. So that is the entry point numero uno if you’re getting interested in AVAX…
The second one is around this block that we have been bouncing from [$65-$85].”
According to Van de Poppe, AVAX’s deep retracement puts the Ethereum rival in a solid position to rally next year.
“And definitely, the left side of this chart shows that after a big impulse wave, you will get a corrective period which we are currently also seeing before we are going to have a new impulse wave taking place in 2022.”
Avalanche is trading for $78.79 at time of writing, down 12% on the day and 16.8% from its weekly high of $94.61.
Moving on to future price predictions for AVAX, the analyst uses the Fibonacci extension tool to derive potential targets for Avalanche.
“We are looking at a potential target at $230. We’re looking at $300, and we’re looking at $370.
So is AVAX going to run towards those numbers in the next impulse move? I would not be surprised to see a run of AVAX going toward $360 if we are going to have a bottom [between approximately $90 and $142].
In which [case], we are going to have a new expansion looking for [a] new impulse wave, coming together with the actual growth of the ecosystem resulting in that move.”
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