A widely followed analyst is leaning bullish on layer-1 blockchain Avalanche (AVAX) while offering his forecast for the flagship memecoin Dogecoin (DOGE) and interoperable chain Polkadot (DOT).

The analyst pseudonymously known as Rekt Capital tells his 518,000 followers on the social media platform X that Avalanche witnessed a strong November.

“Avalanche performed a historically bullish monthly close above the light blue level of $38.57.

Any dips [below $38.57] in the future would be a retest attempt, in a very similar fashion to the retests from Sept 2021 and March 2024 (green/orange circles).”

Based on the trader’s chart, he seems to suggest that AVAX tends to rally after retesting $38.57 as support.

Avalanche is trading at $51.14 at time of writing, up over 12% in the past day.

Next up is Polkadot. The widely followed analyst says the 17th-largest crypto asset by market cap also recorded a “bullish monthly close” to reach a level last witnessed in April.

“DOT is also showing very early signs of retesting this level [at around $8.61] into new support.

DOT needs to continue doing this to enable further upside.

Price stability at $8.61 = crucial.”

Polkadot is trading at $10.24 at time of writing, up nearly 7% in the last 24 hours.

As for Dogecoin, Rekt Capital notes the flagship memecoin has broken out from the upper boundary of an ascending triangle pattern that had formed on the daily time frame. In technical analysis, an ascending triangle breakout is considered bullish.

“Any dips into the top of the pattern [at around the $0.43 level], if needed, would constitute a post-breakout retest to confirm the breakout.”

Dogecoin is trading at $0.421.

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AVAX, the native token of layer-1 blockchain Avalanche, has seen a rise of 12% in the past 24 hours, making it a top performer among the top 100 cryptocurrencies by market capitalization.

After nearly six months of decline, Avalanche’s (AVAX) price appears to be in the early stages of a potential trend reversal. On Aug. 5, the token hit a nine-month low of $17.29. However, over the past two weeks, it has gained 48%, reaching $25.78.

At the time of writing, AVAX’s daily trading volume was around $511 million, with a market capitalization of $10.4 billion, according to data from crypto.news.

Although AVAX experienced a flash crash to $17.55 during Bitcoin’s Aug. 5 correction to $49,500, similar to many other altcoins, it has underperformed the broader market since peaking at $65 on March 18.

The recent positive movement in AVAX’s price may be partly driven by encouraging news. Investors have focused on the Avalanche token unlock schedule, noting that the frequency of token unlock events will significantly decrease after the end of 2024. Many believe these unlocks create selling pressure and hinder long-term ecosystem growth, which is crucial for the token’s value appreciation.

Additionally, on Aug. 22, Grayscale Investments announced the launch of the “Grayscale Avalanche Trust,” providing investors with exposure to the Avalanche ecosystem. On the same day, global asset manager Franklin Templeton expanded its Franklin Onchain U.S. Government Money Fund to the Avalanche network, responding to growing investor interest.

While these developments — such as the token unlock schedule and the announcements from Grayscale Investments and Franklin Templeton — are not directly related to AVAX’s fundamental value, they have likely contributed to more positive sentiment among investors, potentially boosting the token’s price outlook.

AVAX sees bullish sentiment in market

Presently, the price of AVAX is positioned above the upper Bollinger Band, which is at $24.79, suggesting that AVAX is trading beyond the typical range of its recent price fluctuations, and indicating a potentially strong bullish sentiment in the market. Such positioning above the upper band may point to overextension in price movements and could signal an impending retracement or consolidation unless sustained by additional buying pressure.

The Relative Strength Index for AVAX is currently at 61.47, which positions it slightly above the neutral zone but still well below the overbought threshold of 70. This implies that while the market is experiencing some bullish momentum, it is not yet at a level that typically signals an imminent reversal due to overbuying.

The trading volume, noted at 1.072 million AVAX, reflects active participation and can be considered supportive of the current price increase, suggesting a genuine market interest rather than a spurious spike. Given the price’s ascent above the upper Bollinger Band combined with a moderately high RSI and robust trading volume, the market dynamics around AVAX indicate a strong bullish undertone but warrant close monitoring for signs of potential volatility or price corrections.

Investors and traders might consider watching for stability above the upper band or a potential pullback towards the middle band at $21.58 as indicators for future price movements, maintaining a balanced view given the heightened market activity.

A widely followed crypto believes that Solana (SOL) can reasonably climb by more than 850% before the current cycle expires.

Pseudonymous analyst Kaleo tells his 643,700 followers on the social media platform X that Solana appears to be mirroring the price action of Ethereum in late 2020 just before ETH skyrocketed to its all-time high (ATH) of $4,878.

“If Solana manages similar growth from the previous ATH that ETH did last cycle during this bull market, $1,000 SOL is a reasonable target.”

But Kaleo notes that Solana can climb even higher if it truly follows ETH’s 2020 script. In August 2020, ETH traded at around $308 before witnessing a parabolic rally to its all-time high in over a year.

“Let’s just assume [Solana is] where ETH was in August of 2020 then and we get a 1,400% pump to $2,000+ from here.”

At time of writing, Solana is trading for $146.74, up slightly in the last 24 hours.

The analyst is also keeping an eye on the price action of fellow layer-1 protocol Avalanche (AVAX). According to the crypto trader, AVAX’s current price action is reminiscent of its movements during the first half of 2021.

Back then, AVAX witnessed a deep drawdown prior to a vertical rally that sent the altcoin to record highs of $144.96.

“The current drawdown reminds me of what we saw in 2021 – pump to start the year, bleed off, send to $100+.” 

At time of writing, AVAX is worth $21.43.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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