A Warning About a Red-Hot Memecoin
A well-known crypto analyst is cautioning investors about a popular Solana-based memecoin called Bonk. Altcoin Sherpa, a pseudonymous strategist, believes that Bonk could experience a significant decline after its recent surge. However, he advises against shorting the token, comparing it to stepping in front of a speeding train. He also warns against using leverage to trade Bonk.
Altcoin Sherpa’s chart analysis suggests that Bonk could drop to previous support levels around $0.0000110 or $0.00000752. Currently, Bonk is trading at $0.00001232, marking a gain of 980% since November 8th.
Predictions for Solana and Avalanche
In addition to his thoughts on Bonk, Altcoin Sherpa also shares his outlook on Solana and Avalanche. He predicts further upward movement for Solana, noting that $80 is the next key level to watch, followed by $116. Altcoin Sherpa considers Solana to be one of the strongest coins in the market.
As for Avalanche, Altcoin Sherpa believes that the current pullback spot presents an interesting opportunity. He expects Avalanche to reach higher levels in the mid-term, potentially reaching $40. He also points out the strong performance of Solana and Avalanche compared to other chains in 2021.
Hot Take: Potential Risks and Opportunities
While Bonk has seen impressive gains, Altcoin Sherpa warns of a potential decline in its value. Traders should exercise caution and avoid shorting the token or using leverage. On the other hand, he remains bullish on Solana and Avalanche, expecting further growth for both coins. It’s important for crypto investors to carefully assess the risks and opportunities associated with different altcoins and make informed decisions based on their own research and risk tolerance.
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