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).
[adinserter block="1"]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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