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January 12, 2024

Trader Predicts ‘Downside’ for Dogecoin Rival That’s Up Over 8,000% in Three Months, Updates Outlook on Arbitrum

By Daily Hodl Staff

Widely followed crypto trader Altcoin Sherpa is predicting that one red-hot Dogecoin (DOGE) rival is about to undergo a severe market correction.

The pseudonymous analyst tells his 205,300 followers on the social media platform X that Bonk (BONK) could soon dip to a much lower trading range.

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However, he warns that the memecoin could still rally higher before the possible dip.

“BONK: you probably should consider getting out of this (or at least partially) around here. Expecting more downside. With that said, I definitely wouldn’t short it; I think it could still go up to $0.0000190 before more downside. But I do believe it tests much lower levels later.”

Source: Altcoin Sherpa/X

Looking at his chart, the trader suggests Bonk may soon enter a trading range with a lower bound at $0.0000100 and an upper bound at $0.0000140.

Bonk is trading for $0.0000147 at time of writing, up 8,158% from three months ago.

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Next up, the trader says he is bullish on the Ethereum (ETH) layer-2 scaling solution Arbitrum (ARB).

“ARB what about this chart is bearish? I would enter from here down to $2 and assume this is a great entry. Still bullish on ETH beta for now.”

Source: Altcoin Sherpa/X

Arbitrum is trading for $2.30 at time of writing, up nearly 6% in the last 24 hours.

Lastly, the trader believes that smart contract protocol Avalanche (AVAX) may retest lower Fibonacci retracement levels and could briefly dip below $30.

“AVAX: I suspect that a lot of these projects are going to bounce at key fib levels. AVAX did at the .382 ($34.13). Still think this one trades a bit lower to be honest. Nabbing sub-$30 would be solid.”

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Source: Altcoin Sherpa/X

Avalanche is trading for $37.46 at time of writing, down more than 4% in the last 24 hours.

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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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