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

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.

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.

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.