An exponential rally for one of Ethereum (ETH)’s biggest rivals could be just around the corner, a widely respected analyst and trader said.
The analyst, known by the pseudonym Kaleo, told his 651,800 followers on social media platform
“If similar price action continues, the AVAX $400 upside target is not as crazy as it sounds.”
Trading at $26.19 at the time of this writing, the Avalanche would need to rise 1,427% from current levels to reach $400.
However, Kaleo says that despite price action between Avalanche and Ethereum mirroring each other over similar time periods, there are some differences.
“ETH currently does not have a similar level of competition for capital from other layer 1 ecosystems as AVAX does. Conversely, there is more capital in the market as a whole than there was at this point in the previous cycle.
ETH had several narratives that drove it higher, including decentralized finance (DeFi) and non-fungible tokens (NFTs). What will the narrative be for AVAX? For now, it appears to be a Layer 1 Launchpad story (e.g. take a look at some of the recent partnerships and launches announced over the past year). Can these types of partnerships continue? More importantly, can we find our own catalyst outside of it?”
Kaleo also said there is no guarantee that Avalanche will enjoy similar growth to Ethereum in the early days, but “proper execution and momentum in the right market conditions” would make it more likely.
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