A widely followed analyst and trader says that an exponential rally for one of Ethereum’s (ETH) biggest rivals could be around the corner.
The analyst pseudonymously known as Kaleo tells his 651,800 followers on the social media platform X that the price action of Avalanche (AVAX) over its first four years mirrors Ethereum’s during the same timeframe.
“If similar price action continues to play out, an upside target of $400 AVAX isn’t as crazy as it sounds.”
Avalanche, which is trading at $26.19 at time of writing, would have to go up by 1,427% from the current level to reach $400.
However, Kaleo says that Avalanche and Ethereum have some differences despite their price action mirroring each other’s at similar periods of their lifetime.
“ETH didn’t have a similar level of competition for capital from other layer-one ecosystems as AVAX has currently. Conversely, there’s more capital in the market as a whole than there was at this point of the previous cycle.
ETH had multiple narratives that really led its push higher – Decentralized Finance (DeFi) & non-fungible tokens (NFTs). What will AVAX’s narrative be? Currently, it looks like it’s the layer-one launchpad narrative (e.g. look at the recent partnerships and launches they’ve announced over the course of the past year). Can it continue to make those type of partnerships? More importantly, can it find its own catalyst outside of that?”
Kaleo further says that while it’s not guaranteed that Avalanche will enjoy similar growth to Ethereum’s in its early years, “proper executive and momentum in the right market conditions” would make it more likely.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Follow us on X, Facebook and Telegram
Generated Image: Midjourney
Read the full article here