Crypto analyst Ali Martinez is warning traders that a red-hot Dogecoin (DOGE) rival could be in store for a correction.
Martinez tells his 35,100 followers on the social media platform X that the asset’s Tom DeMark (TD) Sequential indicator presented a buy signal on its weekly chart before it launched its bull run in October.
The TD Sequential indicator is used by traders to predict potential trend reversals based on the closing prices of the 13 previous bars or candles.
Martinez notes that the indicator is now flashing the opposite, however.
“Now, the same indicator is showing a sell signal. This suggests BONK might be heading into a correction period lasting one to four weeks.”
“If this signal is confirmed, it might set up a prime buying opportunity with ETH potentially retracing to $2,150. This could be a key moment before a potential rally toward $3,500.”
ETH is trading at $2,235 at time of writing.
Additionally, Martinez warns that BNB (BNB), the native utility token on the decentralized finance (DeFi) platform Binance Smart Chain, is forming a descending triangle on its weekly chart. A descending triangle is typically considered a bearish continuation pattern.
Says the trader,
“Watch for a close above $260 to confirm a bullish BNB breakout. Until then, it might be wise to hold steady!”
BNB is trading at $249 at time of writing.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3