- BONK has formed a double-bottom pattern on a higher timeframe chart suggesting a bullish trend reversal.
- However, a lack of high trading volumes in the derivatives market could lead to price consolidation.
As a seasoned analyst with over two decades of experience in the cryptocurrency market, I have seen my fair share of bull and bear markets. Observing BONK [BONK]’s recent price action and technical indicators, I am cautiously optimistic about its potential for further gains.
In the past day, the value of Bonk (BONK), the second-largest meme token on the Solana blockchain, decreased by approximately 4% and was trading at $0.0000448 at the time of reporting. The volume of trades for BONK also fell by around 40%, according to CoinMarketCap, which is consistent with the broader market trend.
Although there was a recent decline, BONK stands out as one of the leading tokens this year, with an impressive growth of over 200% since its start.
As 2024 winds down, it appears that BONK could potentially see further growth in the upcoming weeks.
BONK forms a double-bottom pattern
On its daily chart, BONK appears to have developed a double-bottom formation, typically indicating a shift from a downward trend to an upward trend.
On November 20th, the meme coin reached the zenith of a double-bottom pattern, reaching an unprecedented high of $0.0000623 in price. After creating its initial trough, BONK established a support line around $0.000046. Currently, it’s attempting to break through the resistance at this level again.
Should BONK surpass the current resistance point – simultaneously serving as the neckline for the double bottom structure – it might trigger an upward trend beyond $0.0000623, potentially leading to a new all-time high (ATH).
If it’s unable to break through the resistance at $0.000040 and instead falls below that level, it would contradict the bullish argument and potentially trigger a downward movement.
Based on the technical analysis, it appears that an upward trend seems very probable, as indicated by the chart’s indicators. Specifically, the Money Flow Index (MFI) is pointing upwards, suggesting strong buying interest and increasing investment in BONK, which could lead to a surge in its value.
Furthermore, the Moving Financial Indicator (MFI) stands at 67, indicating that the market’s momentum continues to be positive, and as for BONK, it hasn’t reached an oversold state yet.
Based on the BBTrend indicator, it appears the bulls are dominating the market. Yet, the diminishing histogram bars hint at a possible decrease in momentum.
Derivative trading volumes could precede consolidation
In the past fortnight, trading activity related to BONK in derivative markets has noticeably decreased according to information from Coinglass. However, these activities reached unprecedented peaks when BONK surged to its all-time high (ATH) around mid-November.
Simultaneously, BONK’s open interest decreased from $64 million to $26 million over a span of three weeks, underscoring the low level of active trading in the market.
As a researcher, I’m observing that if the current surge in speculative activity surrounding BONK does not continue, it might find itself in a phase of range-bound consolidation. In simpler terms, without further significant movement or change, BONK may stay within a specific price range for an extended period.
Read Bonk [BONK] Price Prediction 2024-2025
Can BONK flip WIF in 2025?
According to AMBCrypto’s report, for a brief period in November, the meme coin BONK overtook Doge (WIF) to claim the largest spot among Solana-based meme coins. However, since then, Doge has reclaimed its top position with a market cap of $3.68 billion compared to BONK’s current market cap of $3.34 billion.
If BONK surpasses its resistance at $0.000046 and solidifies the double-bottom pattern, this might trigger a prolonged upward trajectory in 2025, fostering growth in market capitalization. A new all-time high for BONK could potentially displace WIF from its position again.
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2024-12-10 00:08