As a seasoned analyst with over a decade of experience in the crypto market, I’ve seen my fair share of price surges and corrections. The recent 3% rise in BONK price to $0.000018 is certainly intriguing, especially given its correlation with Bitcoin’s movement above the $60,000 psychological level.
As an analyst, I observed a notable 3% increase in the price of BONK to $0.000018 during yesterday’s trading session. This surge seems to be closely tied to Bitcoin‘s price breaching the significant $60,000 psychological barrier. Over the past three days, this Solana-based meme coin has demonstrated a consistent upward trend, suggesting a revitalized buying momentum and possibly the formation of a bottom. The question now is whether buyers will continue fueling this recovery or if sellers are strategically biding their time for a potential counterattack.
BONK Price Consolidates Above Major Support
For the last fortnight, the BONK price has been moving horizontally, bouncing between its 200-day Exponential Moving Average and the ascending trendline of a channel pattern. This chart configuration features two trendlines that function as flexible support and resistance levels, fostering a gradual recovery trend.
For meme coin investors, it’s essential that price action above the bottom support (blue) occurs. This support level, previously tested, triggered a remarkable 267% surge to $0.000045. The momentum, as indicated by the Relative Strength Index, is showing a rising trend, suggesting increased buying interest within the channel pattern.
According to data from Coinglass, the open interest for BONK futures has risen to $7.65 Million, suggesting an influx of investors taking on new positions. This increase typically indicates a growing faith among investors in the asset, supporting a bullish outlook.
If the purchasing pressure continues, the BONK price might surge by approximately 17% to confront the joint resistance at $0.0000219 and a sloping trendline. This significant resistance (shown in red) has remained unbroken since May 2024, contributing to the current correction pattern with the formation of new lower highs.
If the price surges past the current resistance level, it would indicate the conclusion of a three-month downward trend and provide a good opportunity for buyers to initiate a sustained price increase. Following this surge, the asset could potentially rise by more than 50%, with the target prices being around $0.0000338 and further up to $0.000045.
Instead of strengthening recovery, the daily EMAs (50, 100, and 200) amassing at the $0.000022 level build a robust barrier. If the support at this level remains intact, BONK may attempt to test the lower trendline again, potentially postponing the breakout hypothesis.
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2024-08-22 00:34