BONK, a cryptocurrency that recently outperformed Dogecoin in trading volume on Coinbase, is causing investor unease following a significant pullback. Notable crypto analyst Altcoin Sherpa shared an analysis on social media, suggesting that BONK might follow a “dead cat bounce” price pattern—a short-lived recovery of a declining asset.
The analyst predicts that if BONK experiences this dead cat bounce, other SOL memecoins will also have a mini-run, presenting a good opportunity to exit positions. While believing in BONK’s potential for a strong comeback, Sherpa notes that it may take time for the asset to build a base and stabilize before any substantial rise.
According to the shared graph, BONK could drop below $0.00000989, then potentially surge to around $0.0000170, followed by another dip below the initial level. The trader expects other memecoins to follow a similar pattern and suggests that a bullish movement for BONK might commence in the following year.
Further elaborating, Sherpa anticipates a possible 50% or more surge in the future, though the timing and location are uncertain. He advises that when BONK undergoes a dead cat bounce, it will be a good time to exit from BONK and other Solana memecoins, cautioning holders to be aware of the risks involved. The analyst speculates a significant run for BONK in 2024, assuming it cools down and gains traction in the hype cycle.
At the time of writing, BONK was trading at $0.0000137, reflecting a 7,427% increase from its October 19 level of $0.000000182. Additionally, the analyst also weighs in on Ethereum, predicting that ETH will soon cross the $3,000 mark, echoing Bitmex co-founder Arthur Hayes’ recent shift from SOL to ETH.
Altcoin Sherpa commented on Ethereum’s free trading up to the $3,000 level. Ethereum saw a slight increase in the last 24 hours, trading at $2,352, with its daily trading volume jumping by 25% to surpass $16 billion.