BONK price rose 3% to $0.000018 on Wednesday as Bitcoin price crossed the psychological $60,000 mark. This Solona-based meme coin has risen for three days in a row, indicating renewed buying momentum and a possible bottom formation. Will buyers continue to drive this recovery or are sellers waiting for a counterattack?
BONK price consolidates above major support
Over the past two weeks, BONK price has been exposed to a sideways movement, fluctuating between the 200-day exponential moving average and the support trendline of a rising channel pattern. This chart setup consists of two trendlines that act as dynamic support and resistance to guide a steady recovery trend.
A consolidation trend above the lower support (blue) is crucial for meme coin buyers as the last retest of this support supported a 267% surge to $0.000045. The momentum indicator Relative Strength Index forming a higher lower formation indicates the increasing buying pressure at the channel pattern.
Supporting the bullish thesis is that BONK futures open interest saw a fresh increase to $7.65 million, according to Coinglass data. This increase in open interest suggests that more investors are entering the market and opening new positions, which is often a reflection of growing confidence in the asset.
With sustained buying, BONK price could rally 17% and challenge the combined resistance of $0.0000219 and a downtrend line. This overhead resistance (red) has been intact since May 2024, driving the current corrective trend with a new lower high formation.
A potential breakout from this resistance would signal the end of a three-month correction and provide buyers with suitable footholds for a sustained recovery. The post-breakout rally could propel the asset over 50% to a price target of $0.0000338 and then $0.000045.
On the contrary, the daily EMAs (50, 100 and 200) accumulated at the $0.000022 level are forming a solid resistance to a possible recovery. If the overhead support at the above-mentioned level holds, BONK could challenge the lower trend line again and delay the breakout thesis.
Frequently Asked Questions (FAQs)
The 200-day support trend line is a crucial indicator for BONK and serves as a basis for possible bullish reversals.
The recent increase in open interest in BONK futures to $7.65 million signals increased market participation and confidence.
Consolidation above the 200-day support trend line indicates a bullish trend reversal for BONK.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Equipped with a strong understanding of technical analysis, he keeps an eye on the daily price movements of major assets and indices. Attracted by his fascination with financial instruments, Sahil has enthusiastically turned to the emerging space of cryptocurrencies, where he continues to explore opportunities fueled by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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