Top Trader Eyes Avalanche Over Solana: Is AVAX Primed for a Major Breakout?

Top Trader Eyes Avalanche Over Solana: Is AVAX Primed for a Major Breakout?

In a bold move that has captured the attention of the crypto community, a prominent trader has announced that he is ready to exchange his Solana holdings for Avalanche, should a key signal emerge on the AVAX chart. Both Solana (SOL) and Avalanche (AVAX) rank among the most popular layer-1 blockchain platforms, making this potential trade a significant indicator of the growing competition and volatility within the crypto market.

As of today, AVAX is trading at $28.65, up 2.8% over the past 24 hours. The token briefly surged to $29.26 in the early hours of October 21 before experiencing a minor pullback. The Avalanche price chart remains bullish, with projections suggesting a potential 20%+ upside.

Is AVAX Price Set for a Rally?

Greeny, a well-known trader on X, has been closely monitoring Avalanche’s price action and is contemplating swapping his SOL for AVAX if the asset “breaks out and demonstrates strength.”

Over the past two years, AVAX has been underperforming against SOL, down 83% in comparison. However, a reversal could trigger a substantial price surge for AVAX.

The likelihood of a turnaround has increased following the recent announcement of Avalanche9000, a network upgrade designed to deliver near-instant transaction finality, reduce costs, and improve overall network efficiency. Additionally, Avalanche has secured a strategic partnership with Colombian bank Littio, which plans to migrate its Yield Pots platform from Ethereum to Avalanche.

Further supporting a bullish outlook, Coinglass Liquidation Map data reveals that long positions on Avalanche are significantly larger than short positions, with $10.88 million in longs compared to $5.42 million in shorts. Most long positions are concentrated between $27.3 and $27.7, creating solid support in the $26.7 to $28.1 range. In contrast, the short positions are more cautious and spread across smaller, low-leverage trades, indicating a conservative approach to betting against AVAX.

Avalanche Price Prediction: Targeting $35

Avalanche’s price is currently moving within an ascending channel, often signaling the continuation of an uptrend until a breakout or breakdown occurs. With the current price nearing $29, AVAX is approaching the upper resistance of the channel around $35, suggesting a potential 22% gain if the price reaches the upper boundary at $35.25.

Key Support and Resistance Levels:

• $27-$28 Range: This zone offers strong support, reinforced by the lower boundary of the ascending channel and the 50-day EMA (green line) acting as dynamic support.
• $30: The first key resistance level, with the next target at $35, which marks the channel’s upper boundary.

If the bullish momentum continues, AVAX could first aim for $30, followed by a push to $35. However, failure to surpass $30 may lead to a retest of the $27 support level (200-day EMA). A breakdown below this level could invalidate the current bullish trend, potentially shifting market sentiment towards a more bearish outlook.