A Brief Pause

Altcoins have been on a breather lately after escaping a prolonged period of stagnation. They 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, cannot envision a future altcoin rally. However, it’s standard practice and should not alarm those familiar with cyclical behavior.

Regular readers will remember my call regarding BONK back in October 2023. When I published the pick, BONK had a market cap of $24 million and was recently 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 the equivalent of a “leveraged” investment in Solana without the risk of liquidation. This particular aspect has encouraged me to begin building a somewhat modest position. As always, my standard rule of practice is to increase allocation during severe corrections. There are still enormous corrections, even once the bull market kicks off.

This was my best call of the current bull market thus far. In many ways, it established a blueprint regarding the correlation between Layer1 chains and the memecoins within their ecosystems. Furthermore, another correlation is materializing regarding BNB and an established memecoin within its ecosystem.

Vita Inu Following The Blueprint

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 $40 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.

In all fairness, BNB has not even begun to rally, and VINU has responded positively. If VINU is reacting so positively at these levels, what will happen when BNB starts to move and breaks the $1000 mark? Just as with BONK, the early stages of Solana’s rally significantly impacted BONK’s price. Once Solana began making sizeable moves, BONK exploded. I expect a similar response from the dynamic between BNB and VINU.

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!