Analyst Issues Warning for Dogecoin Rival Up Over 6,000%, Says Four-Week Correction in the Cards for Altcoin
Crypto analyst Ali Martinez is warning traders that a red-hot Dogecoin (DOGE) rival could be in store for a correction.
The Solana-based (SOL) memecoin Bonk (BONK) is trading at $0.000012 at time of writing, up a staggering 6,022% from where it was priced at the beginning of 2023.
Martinez tells his 35,100 followers on the social media platform X that the asset’s Tom DeMark (TD) Sequential indicator presented a buy signal on its weekly chart before it launched its bull run in October.
The TD Sequential indicator is used by traders to predict potential trend reversals based on the closing prices of the 13 previous bars or candles.
Martinez notes that the indicator is now flashing the opposite, however.
“Now, the same indicator is showing a sell signal. This suggests BONK might be heading into a correction period lasting one to four weeks.”
The analyst also notes that Ethereum’s (ETH) TD Sequential indicator is also flashing a sell signal on the asset’s three-day chart.
“If this signal is confirmed, it might set up a prime buying opportunity with ETH potentially retracing to $2,150. This could be a key moment before a potential rally toward $3,500.”
ETH is trading at $2,235 at time of writing.
Additionally, Martinez warns that BNB (BNB), the native utility token on the decentralized finance (DeFi) platform Binance Smart Chain, is forming a descending triangle on its weekly chart. A descending triangle is typically considered a bearish continuation pattern.
Says the trader,
“Watch for a close above $260 to confirm a bullish BNB breakout. Until then, it might be wise to hold steady!”
BNB is trading at $249 at time of writing.
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