Trader Predicts Downside for Dogecoin Rival Thats Up Over 8,000% in Three Months, Updates Outlook on Arbitrum

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.

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.

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.

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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This article was originally reported on The Daily Hodl.