After yesterday’s sharp decline, the crypto market is showing signs of recovery today. However, correction may continue for some tokens that have exploded recently. Master crypto analyst Ali Martinez warns investors about this. Notably, the analyst predicts that Dogecoin’s ardent rival will make a correction. In addition, the analyst says that the indicators give a sell signal for 2 altcoins.
BONK will enter a correction process!
cryptokoin.comAs you follow from , Solana-based meme-coin Bonk (BONK) has experienced a complete explosion this year. BONK is up a staggering 6,022% from its position at the beginning of 2023. Despite the market downturn, Meme coin was trading at $0.00001233 at the time of writing, up 6% on a daily basis.
Ali Martinez says the Tom DeMark Sequential (TD) indicator offered a buy signal on the weekly chart for BONK before it started its bull run in October. Traders use this indicator to predict potential trend reversals based on the closing prices of the previous 13 bars or candles. However, Martinez notes that the indicator currently shows the opposite for the altcoin. In this context, the analyst said, “Now, the same indicator is showing a sell signal. This indicates that BONK will enter a correction period that will likely last one to four weeks.”
Leading altcoin will make a pullback before rally
Ali Martine also looks at the leading altcoin Ethereum (ETH). The analyst notes that the TD Sequential indicator has issued a sell signal on the asset’s three-day chart. In this regard, the analyst said, “If this signal is confirmed, it could create a significant buying opportunity with ETH potentially retreating to $2,150. “This is probably an important moment before a potential rally towards $3,500.”
Meanwhile, ETH was trading at $2,203 at the time of writing, down 0.94% on a daily basis. The leading altcoin fell into the red zone on its weekly chart after the last decline.
BNB formed a bearish continuation pattern
Additionally, Ali Martinez warns that BNB (BNB), the native utility token of decentralized finance (DeFi) platform Binance Smart Chain, has formed a descending triangle on its weekly chart. A descending triangle is typically considered a bearish continuation pattern. “A close above $260 is needed to confirm that BNB is bullish,” the analyst said. Until then, it would be wise to stay put!” says
Meanwhile, at the time of writing, BNB was trading at $255 with a daily gain of 4.84%. Despite the negative atmosphere in the market, the altcoin was one of the largest tokens to rise today.
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