A widely followed analyst and trader says an exponential rally against one of Ethereum's (ETH) biggest rivals could be on the horizon.
An analyst known by the pseudonym Kaleo told his 651,800 followers on social media platform Ta.
“If similar price movements continue, the $400 upside target for AVAX is not as crazy as it sounds.”
At the time of writing, Avalanche is trading at $26.19, but it would need to rise 1,427% from current levels to reach $400.
However, Kaleo said that even though the price movements of Avalanche and Ethereum reflect each other's price movements during the same period of their lives, there are some differences.
“ETH has not had the same level of competition for capital from other layer 1 ecosystems that AVAX currently has. On the contrary, there is more in the overall market than at this point in the last cycle. capital exists.
ETH actually had multiple stories that led to its rise: decentralized finance (DeFi) and non-fungible tokens (NFTs). What will the story of AVAX be like? At the moment, it appears to be a layer 1 launchpad story (just look at the recent partnerships and launches announced over the past year, for example). Will we be able to continue this kind of partnership in the future? More importantly, can we find other unique catalysts? ”
Additionally, Kaleo said there is no guarantee that Avalanche will achieve similar growth to Ethereum in its early stages, but that with “the right management team and momentum in the right market environment,” the chances of it happening will increase. .
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