A closely tracked crypto analyst is mapping out what’s in store for Ethereum rivals Terra (LUNA) and Avalanche (AVAX) as the digital asset markets flash signs of life.
In a new strategy session, Altcoin Sherpa says that decentralized finance (DeFi) payment network Terra looks strong on the shorter timeframes as it continues to establish higher lows.
[adinserter block="1"]“It’s still, in my opinion, a bullish market structure on the four-hour [chart] and the EMAs (exponential moving averages) still look pretty decent as well.”
While the crypto strategist believes LUNA is still in an uptrend, he warns that the seventh-ranked crypto asset is starting to show bearish signals.
“There’s a lot of high sell volume coming in, and it looks like there is potentially some type of head and shoulders pattern playing out. But I would be careful shorting this one personally just because I think that usually, you don’t want to short stuff that’s super strong in general.”
According to Altcoin Sherpa, the $75 price area offers a decent support level for LUNA.
LUNA is currently trading at $91.60 at time of writing.
The next coin on the trader’s radar is smart contract platform Avalanche, which he says is gearing up for a rally ahead of the Avalanche Summit.
“AVAX is in a high timeframe bearish market structure, in my opinion, just because we’re seeing some of these lower lows and lower highs. But currently, we could be breaking out, and there are some bullish catalysts for AVAX in the next week or so with the Avalanche Summit coming [up]… Next target would be about $100, in my opinion.”
Although Altcoin Sherpa sees AVAX rallying in the coming days, he believes the altcoin will not record a new all-time high. At time of writing, AVAX is exchanging hands for $89.34.
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