The cryptocurrency market fell 3% in a day, with continued uncertainty in the Middle East, the US election, and the global economy weakening prices. Currently, Bonk [BONK] is consolidating in a narrow range and is about to break out. The price has been following a symmetrical triangle pattern, which is often a signal that a move is imminent.
If a breakout occurs, it could trigger a bullish wave in the coming weeks. Notably, BONK is approaching the apex of the triangle, which suggests that a breakout could occur soon.
Technical indicators show bearish momentum
Looking at BONK on the 4-hour chart, the price is holding above the critical support at $0.00002107 at press time.
The 50-period and 100-period EMAs are acting as dynamic supports, but the price recently tested the 50-EMA, suggesting the possibility of further consolidation.
It remains above the critical support at $0.00002107.
The 50-period and 100-period EMAs are acting as dynamic supports, but the price recently tested the 50-EMA, suggesting the possibility of further consolidation.
If the price breaks below the 100 EMA at $0.00002108, it could signal downside pressure in the short term
The relative strength index (RSI) is hovering around 44.95, indicating that BONK is approaching oversold conditions.
An RSI move back above 50 could signal renewed buying pressure, but the current downtrend suggests that prices may continue to consolidate.
Additionally, the Moving Average Convergence Divergence (MACD) on the 4-hour chart is showing a bearish crossover, which would strengthen the likelihood of a bearish trend unless the price is able to regain momentum.
BONK's current market performance
Currently, the price of Bonk is $0.00002108, down 1.23% in the past 24 hours and 12.35% in the past 7 days. With a circulating supply of 69 trillion tokens, $BONK has a market cap of $1.5 billion.
Despite the short-term price decline, World of Charts remains optimistic about the possibility of a breakout as long as key support levels hold.
The latest data from Coinglass shows that both trading volume and open interest for memecoin have increased. Trading volume rose 5.58% to $91.07 million, while open interest rose 1.57% to $9.94 million.
These indicators suggest that traders are positioning themselves for a potential breakout.
Is Bonk about to see a 10x rally?
BONK is clearly on a downward trajectory right now, and may have to fall further before it can begin to recover in a more coordinated manner.
For example, its relative strength index (purple) has slipped from over 70 a few days ago to around 40 today, leaving room for further declines before becoming excessively oversold.
Even more telling, BONK’s 30-period average (orange) just dropped below its 200-period average (blue), forming a “death cross” that often signals a sharp decline.
However, BONK's relatively high trading volume may indicate that any decline will be relatively short-lived, with demand seemingly slamming into today's sales.
While we haven’t seen any large BONK transfers in recent weeks, it’s worth noting that the token’s largest whales continue to store around 2.41 trillion BONK.
That’s worth about $50 million, or 2.5% of the total meme token supply.
Whales have been holding onto their BONK throughout the recent ups and downs, which suggests that they expect BONK to rise higher in the long term, which will fuel its bullish pattern formation, and BONK's symmetrical triangle hints at a breakout and the potential for a major bullish wave. The surge in volume and open interest also provides support for subsequent price increases.
