Future Signs Of Greatness?
A Brief Pause
Altcoins have been on a breather lately after escaping a prolonged period of stagnation. Altcoins are notorious for achieving much of their gains in the final stages of a bull market. However, many are ignorant of this dynamic and as a result, are unable to envision a future altcoin rally. However, it’s standard practice and should not be alarming to those familiar with cyclical behavior.
Regular readers will remember my call regarding BONK back in October of 2023. When I published the pick, BONK had a market cap of $24 million and is now valued above $3 billion. Various factors alerted me to BONK’s potential, and within weeks an enormous rally was in motion, arguably one of the largest rallies of 2023. One of the key indicators was a relativity ratio I had identified by monitoring BONK’s price action.
Relativity ratios are an integral aspect of all of my strategies and approaches to the market. Let’s revisit that article from 2023 with an excerpt identifying one of the key relativity ratios that alerted me to BONK:
Due to its strong correlation and relativity to Solana, I view BONK as being the equivalent of a “leveraged” investment in Solana without the risk of liquidation. It is this particular aspect that has encouraged me to begin building a somewhat modest position. As always, my standard rule of practice is to increase allocation during severe corrections. Yes, even once the bull market kicks off there are still enormous corrections.
Similarly, Vita Inu (VINU) mirrored BONK’s performance last year. Not only has VINU experienced an initial rally similar to BONK, but its price action also mirrors BONK’s since its inception. BONK began rallying alongside Solana in 2023 and was a byproduct of what I refer to as the Layer1 effect. Once again, a similar dynamic is unfolding regarding BNB and VINU. This BNB memecoin has rallied hundreds of percent in recent weeks.
VINU has rallied 930% since November and is currently up 370% providing a relatively good entry point. As I mentioned, I alerted readers to BONK at a $24 million market cap. Look at where it is today. VINU’s market cap is $46 million, which is still very low for a BNB memecoin. VINU could still rally 20X and have a market cap less than Baby Doge. VINU ticks many of the boxes I watch for.
I purchased VINU early last year and will increase my position during market corrections. I am looking for signs of a reversal at the current levels before adding again to my position. VINU also boasts feeless transactions and smart contracts, making it a little more than a standard memecoin. It’s also important to remember that memecoins are incredibly volatile.
Projects that trend higher over time with a track record stand a much higher chance of success and avoid possible collapse. Many memecoins have initial rallies that eventually fade, resulting in a complete collapse. VINU’s long-term chart looks good, especially as it is a memecoin. Having surrendered much of its recent gains due to overall market sentiment, it offers a good risk/reward ratio at current levels.
Final Thoughts
These are my thoughts and should not be interpreted as investment advice. Previous performance is not indicative of future performance. Always exercise caution when trading and investing in memecoins. VINU is available on Gate.io and MEXC. Alternatively, DEX users can use PancakeSwap. All the best, see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
Posted Using InLeo Alpha