CDS Crypto News BONK Price Sees 3% Surge Amid Bitcoin Rally: Is a Strong Recovery on the Horizon or a Seller’s Trap?
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BONK Price Sees 3% Surge Amid Bitcoin Rally: Is a Strong Recovery on the Horizon or a Seller’s Trap?

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BONK Price Sees 3% Surge Amid Bitcoin Rally

BONK Price Sees 3% Surge Amid Bitcoin Rally: Is a Strong Recovery on the Horizon or a Seller’s Trap?

On Wednesday BONK, a Solana-based meme coin, experienced a 3% price surge to $0.000018, coinciding with Bitcoin’s rise above the significant $60,000 level. This marks the third consecutive day of gains for BONK, suggesting a resurgence in buying momentum and the possibility of a bottom formation. The question remains: will buyers continue to push the price higher, or are sellers preparing for a counter-move?

BONK Price Stabilizes Above Key Support

In the past two weeks, BONK’s price has been consolidating within a range defined by the 200-day Exponential Moving Average and the support trendline of a rising channel pattern. This pattern is characterized by two trendlines that serve as dynamic support and resistance, guiding a steady upward trend.

Maintaining the consolidation above the bottom support (highlighted in blue) is crucial for BONK’s bullish outlook. The last time the price retested this support, it triggered a significant 267% rally to $0.000045. Additionally, the Relative Strength Index (RSI) is forming higher lows, signaling increased buying pressure within the channel.

Further supporting the bullish scenario, BONK futures open interest has surged 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, reflecting growing confidence in the asset.

BONK Price Sees 3% Surge Amid Bitcoin Rally

If the buying momentum continues, BONK could rally another 17% to challenge the combined resistance at $0.0000219, along with a descending trendline. This overhead resistance (marked in red) has been in place since May 2024 and has driven the current correction trend, establishing a series of lower highs.

A successful breakout above this resistance would signal the end of a three-month correction, providing a strong foundation for a sustained recovery. Post-breakout, BNK could potentially rally over 50%, targeting $0.0000338, with further gains up to $0.000045.

BONK Price Sees 3% Surge Amid Bitcoin Rally

On the other hand, the daily EMAs (50, 100, and 200) clustered around the $0.000022 level pose a formidable resistance to this potential recovery. If the overhead resistance at this level holds, BONK might retest the lower trendline, potentially delaying the breakout and recovery.

BONK Price Sees 3% Surge Amid Bitcoin Rally

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