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.”
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.”
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.”
Avalanche is trading for $28.05 at time of writing, up 4.6% in the last 24 hours.
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