The cryptocurrency market is abuzz with anticipation as Avalanche (AVAX), often dubbed an Ethereum (ETH) rival, is poised for a substantial surge, potentially exceeding 12% in value. This prediction comes from a well-regarded crypto strategist known as Altcoin Sherpa, who commands the attention of over 196,000 followers on the social media platform X.

The Catalyst: Stars Arena

Altcoin Sherpa’s bullish outlook for AVAX revolves around the recent launch of Stars Arena, a decentralized social finance application (SocialFi), on the AVAX blockchain. Stars Arena has garnered significant attention as it competes with Friend.tech, which made its debut on Coinbase’s Base blockchain.

The crypto analyst advocates for buying AVAX, citing the influence of Stars Arena and its potential impact on the token’s value. Altcoin Sherpa suggests that AVAX could potentially reach $12, a remarkable increase from its current valuation.

“AVAX: buy AVAX due to Stars Arena. $12 eventually maybe. If Base had a token during FT (Friend.tech), that would have also done extremely well. People who don’t want exposure to Stars Arena might just buy AVAX and ride this instead.”

Chart Analysis and Projections

Analyzing the chart, Altcoin Sherpa anticipates that Avalanche will encounter resistance around its present value and might briefly dip to $10.20 before experiencing a surge that could take it beyond $12, potentially in November.

At the time of writing, AVAX is valued at $10.66, reflecting a 4.7% increase in the past 24 hours. The trader’s analysis suggests that AVAX is on an upward trajectory, buoyed by the growing interest in Stars Arena and its potential impact on the AVAX blockchain.

Uncertainty Surrounding Stars Arena’s Future

While Altcoin Sherpa is optimistic about AVAX’s prospects, he acknowledges the uncertainty surrounding Stars Arena’s future. The proliferation of decentralized social finance applications has led to social network fragmentation, as creators and influencers explore various platforms. This fragmentation raises questions about the long-term viability of multiple social apps vying for dominance.

“Creator/influencer time/energy is running thin in regards to overall social network fragmentation. Before, all information/alpha/conversation was shared on Twitter. Now? People sharing on FT, Stars Arena, etc. Is it possible for many of these social apps to win? Hard to say.”

Solana’s Dip and Recovery Potential

In addition to AVAX, Altcoin Sherpa provides insights into Solana (SOL), an Ethereum competitor. The strategist anticipates that SOL could experience a dip to lower levels, presenting attractive buying opportunities. SOL’s potential dip is expected to be between $21 and $22, contingent on Bitcoin’s (BTC) stability.

The cryptocurrency market remains dynamic and subject to various factors that influence price movements. As AVAX continues to attract attention in the world of SocialFi, traders and investors will closely monitor its progress and potential for significant gains.