A popular crypto analyst says that two Ethereum challengers could move hard and fast during the next bounce in digital asset markets.
In the latest TechnicalRoundup newsletter, the pseudonymous analyst known as Cred says that Ethereum’s recent touch of the $1,900 level provided a fresh test of a key range low, making it a “decent spot for a bounce.”
If crypto markets do go for another leg down, Cred says Ethereum has support near $1,400, and a worst-case scenario target below $1,000.
In the event of another market bounce, the analyst says that leading layer-1 altcoins like Solana (SOL) and Avalanche (AVAX) could be some of the strongest movers.
“These coins do well on bounces because participants are conditioned to buy names they know and like when they’re ‘cheap’ at a time when there’s no new altcoin narrative to ride…
Even more colloquially, if you’re going to gamble on Bitcoin and Ethereum direction, might as well punt some Solana and Avalanche as they’ll likely rip harder if you’re right (and also nuke you harder if you’re wrong).”
Looking at Solana, Cred sees SOL trading in a range, roughly between $45 and $79, with strongly bullish implications should the top of the range break.
“$44-$47 to $79 is the immediate trading range. If the market nukes and support fails, we expect a swift move towards the range low at $25. If the bounce results in a range reclaim above $79, a particularly clear one at that, a move into the $100+ handle is likely.”
Looking at Avalanche, the analyst says that his outlook on AVAX is similar to his forecast on Solana. He gives two possible prerequisites for flipping bullish on the smart contract platform.
“The main distinction is that while Solana/Dollar held its retest of support at $44-$47, Avalanche closed back within its range at $39. As such, to punt this thing on the long side, the market must either retest support in the $24 area or reclaim the range high above $39.”
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Source: https://dailyhodl.com/2022/05/17/analyst-says-ethereum-rivals-solana-sol-and-avalanche-avax-could-rip-hard-next-bounce-here-are-his-targets/