A closely followed crypto strategist is predicting Avalanche (AVAX) will undergo a massive surge due to one main reason.
Pseudonymous crypto analyst Altcoin Sherpa tells his 196,600 followers on the social media platform X that the Ethereum (ETH) rival could increase by more than 12% from its current value.
The analyst says that Avalanche is in an uptrend after the launch of Friend.tech rival Stars Arena, a decentralized social finance application (SocialFi), on the AVAX blockchain. Friend.tech launched on Coinbase’s Base blockchain.
“AVAX: buy AVAX due to Stars Arena. $12 eventually maybe.
If Base had a token during FT (Friend.tech), that would have also done extremely well.
People who don’t want exposure to Stars Arena might just buy AVAX and ride this instead.”
Looking at his chart, the trader expects Avalanche will run into resistance at around its current value and dip to $10.20 before surging past $12 in November.
AVAX is worth $10.66 at time of writing, up 4.7% in the last 24 hours.
According to the trader, it remains unclear if Stars Arena has a strong future.
“Creator/influencer time/energy is running thin in regards to overall social network fragmentation. Before, all information/alpha/conversation was shared on Twitter. Now? People sharing on FT, Stars Arena, etc. Is it possible for many of these social apps to win? Hard to say.”
Next, the trader says Ethereum challenger Solana (SOL) will likely dip to lower levels before another move to the upside.
“SOL: I feel confident these lower levels are going to come for Solana. [It] should be good dip buying opportunities as long as BTC (Bitcoin) holds up.
$21-$22 are the areas.”
Looking at his chart, the trader uses Fibonacci retracement levels to pick a possible dip to the $21 range.
Solana is trading for $23.42 at time of writing, up 2.8% in the last 24 hours.
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Generated Image: Midjourney
