- Bonk has been on a parabolic run in the past few weeks, but its run could be about to come to an end, says one analyst, saying that one critical indicator says it’s the time to sell the meme coin.
- However, the coin continues to make great inroads, with Coinbase announcing today that it had added the meme coin to its roadmap, indicating it would list it soon.
Meme coins are always a great bet for impressive gains, with Dogecoin and Shiba Inu setting the pace in years past by outpacing all other cryptos on the charts. In this bull cycle, Bonk has been the meme coin to watch, gaining over 6,000%. However, if you’re yet to invest in the Solana-based coin, it might be too late as the coin might be about to reverse the trend, says one analyst.
At press time, the coin is changing hands at $0.000009916 for a market cap of $603 million. This places at position 86 on the largest cryptos list, above established projects like the BAYC NFTs-linked Ape Coin, Curve.fi DeFi protocol’s CRV and Blur NFT marketplace’s BLUR. This impressive feat is despite the meme coin shedding 24% in the past day.
In the past week, the token has gained 23%, and in the past month, an incredible 328% from 0.0000028 to $00.000009916. Even more impressive is that the token is less than a year old, having only launched on December 29 last year.
However, according to one analyst, the red-hot meme coin could be about to start shedding its gains as technical indicators start to turn against it. The analyst, Ali Martinez, says it might be time to sell your Bonk tokens before it crashes.
Bonk Turns Bearish
Martinez took to X to share his analysis with his followers, saying that just before the token took off on the bull cycle that saw it gain over 8,000%, its Tom DeMark (TD) Sequential indicator showed a buy signal on its weekly chart.
The TD indicator is named after Tom DeMark, a renowned market analyst, and has been used for the past four decades. They help traders predict and recognize the point at which any asset’s bull or bear cycle is exhausted and starts to reverse the trend.
According to Martinez, this indicator has turned against Bonk and it might be the worst time to ape in on the meme coin. He stated:
Now, the same indicator is showing a sell signal. This suggests BONK might be heading into a correction period lasting one to four weeks.
But even as the analyst predicts a trend reversal, one of the world’s largest exchanges is planning to start supporting its trading. Coinbase announced today that it had placed Bonk on its roadmap, which indicates that it’s only a matter of time before the American exchange starts supporting the meme coin.
Traditionally, every time Bonk has been listed on a new exchange, its price has shot up. In late November, the world’s largest exchange Binance announced the listing of the token and this led to an immediate 25% price rise. At the time, the token wasn’t even on the 250 top cryptos and its market cap was just $197 million.
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