BONK Price Prediction Signals 55% Rally By July End, But There’s a Twist

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As a seasoned researcher with extensive experience in analyzing cryptocurrency markets, I have closely monitored the recent price action of BONK. The 4-day rally observed amid the current market recovery is noteworthy, with the Meme coin jumping from $0.000022 to $0.000028 – a 28% surge. This bullish upswing has breached the immediate monthly resistance of $0.000027 and formed a bullish reversal pattern, making it an intriguing prospect for potential long-term investors.

The daily price chart for BONK indicates a robust 28% surge over the past four days, lifting the coin from its recent low of $0.000022 to a current trading price of $0.000028. This bullish trend has propelled the meme coin’s market capitalization to an impressive $1.94 billion. Notably, this rally has surpassed the immediate monthly resistance at $0.000027 and formed a bullish reversal pattern. Given these developments, some investors may be considering entering long positions in BONK.

BONK Price Prediction: Mt. Gox Sale Impact Overstated

BONK Price Prediction Signals 55% Rally By July End, But There’s a Twist

After the latest market downturn, I observed that the BONK price formed a local minimum at $0.00018 on my charts. This horizontal level aligned almost perfectly with the underlying support line of the rising wedge configuration, resulting in robust buying pressure.

Within just two weeks, the value of the asset has surged by 56%, reaching $0.000028. This bullish trend resulted in a significant price increase, as BONK broke free from its double-bottom reversal pattern.

Ki Young Ju, the CEO of CryptoQuant, contends that the apprehension, anxiety, and doubt (FUD) surrounding the possible sale of Mt. Gox’s Bitcoin is largely unwarranted. In a recent tweet, he emphasized that Bitcoin’s market capitalization has grown much faster than its realized cap, suggesting robust demand within the market.

MtGox FUD is overestimated.
The market capitalization of Bitcoin has grown more rapidly than its realized capitalization since 2023, indicating robust demand with approximately $224 billion worth of the cryptocurrency having been sold during this period. Yet, the price has soared by over 350% during the same timeframe.
If all of MtGox’s $3 billion worth of Bitcoin is sold on Kraken, it would only represent a 1% increase in the total realized capital gain during this current bull market. In other words, this amount is relatively small compared to the overall growth in value within this cycle.
— Ki Young Ju (@ki_young_ju) July 16, 2024

Beginning in 2023, an astonishing $224 billion in Bitcoin has been transacted, and remarkably, its price has escalated by an impressive 350%. According to Ju’s analysis, if the $3 billion worth of Bitcoin from Mt. Gox were sold on Kraken, it would equate to a mere 1% increase in the total value realized during this current bull market cycle. This insignificant effect highlights the well-controlled liquidity present within the market.

In the event of a prolonged market upturn, BONK’s price forecast indicates a possible 55% surge before hitting notable resistance within an ascending wedge configuration. As the trend lines remain intact, this Solana-memecoin could persist in a period of compression.

If the overhead trendline persists, the BONK price may enter another fresh correction.

Technical Indicator:

  • Exponential Moving Average: The coin price back above the daily Exponential Moving Average (20, 50, 100, and 200) indicates the path to least resistance is up.
  • RSI: The daily Relative Strength Index slope back above 60% indicates the memecoin entering a high momentum rally.

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2024-07-16 23:08