Trader Issues Warning on Altcoin That’s Exploded Over 900% in a Month, Unveils Targets for Solana and Avalanche
A widely followed crypto analyst is issuing a warning about one red-hot Solana-based (SOL) memecoin.
Pseudonymous crypto strategist Altcoin Sherpa tells his 200,800 followers on the social media platform X that Bonk (BONK) could go on a massive decline after rising a bit more.
However, he warns traders that shorting the meme asset is akin to “stepping in front of a speeding train” and advises against using leverage to trade the token.
“BONK: this will continue to accelerate until some sort of blow off top. I entered a few days ago and it continues to run; I took half off yesterday and will continue to take profits during this ride. Make no mistake, this is eventually coming way lower eventually.”
Source: Altcoin Sherpa/X
Looking at his chart, the trader suggests BONK could decline to previous support levels around $0.0000110 or $0.00000752.
BONK is trading for $0.00001232 at time of writing, a gain of 980% since November 8th.
Next, the trader updates his outlook on smart contract platform Solana and predicts another leg up for the Ethereum (ETH) competitor.
“SOL: breakout here, love to see it. $80 is next (should certainly come) and after that, $116 is the next key level I’m looking at. Still one of the strongest coins around.”
Source: Altcoin Sherpa/X
Solana is trading for $73.10 at time of writing, up 11.6% in the last 24 hours.
Lastly, the trader says that layer-1 blockchain Avalanche (AVAX) could soon soar more than 42% from its current value.
“AVAX: I think that this current area is a somewhat interesting pullback spot, but I ultimately think we see higher levels in the mid-term. Thinking $40 or something like that. It’s interesting to see the strong 2021 chains like SOL and AVAX do pretty well while the others died.”
Source: Altcoin Sherpa/X
Avalanche is trading for $28.05 at time of writing, up 4.6% in the last 24 hours.
Generated Image: Midjourney
