Crypto Analyst Cred: SOL And AVAX To Outperform In Next Market Bounce
According to a prominent crypto market analyst, known as Cred, two Ethereum challengers Solana (SOL) and Avalanche (AVAX) could do really well during the next crypto market bounce.
Cred writes in the latest TechnicalRoundup newsletter that ETH’s recent move down to the $1,900 level offered a test of an important range low, making it a “decent spot for a bounce.”
Should the crypto market fall down another leg, the analyst says Ethereum has support around $1,400, and a worst-case scenario target below $1,000.
Should the market recover and bounce up, Cred believes that leading layer-1 altcoins like Solana (SOL) and Avalanche (AVAX) could be some of the strongest performers. He wrote:
“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).”
Solana (SOL)
Regarding Solana, Cred identifies a trading range, roughly between $45 and $79, where he sees SOL to move 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 into Avalanche, Cred says that his outlook on AVAX is similar to 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.”
