The popular memecoin BON (BONK) has created a buzz among market participants. At the time of writing, the price of this altcoin is $0.00001886, having risen 4.89% in the past 24 hours. However, BONK's trading volume surged by 34.44% during the same period.
With strong investor interest and growing trading activity, BONK's market capitalization is slightly above $1.35 billion.
Will BONK gain momentum after being listed on the Gemini exchange?
After BONK's recent listing on the Gemini exchange, trading interest surged. Consequently, the adoption rate is also higher. The exchange now supports deposits and withdrawals of BONK, including asset fluidity, and provides instant transfers for investors.
However, BONK is just the latest in a series of popular memecoins adopted by Gemini in its cryptocurrency offerings. In fact, Gemini has already launched DOGE, PEPE, SHIB, and WIF products on the exchange.
However, it is important to note that this is a significant listing. Especially because BONK can now reach a broader user base, this user group will help the memecoin rapidly expand its market share.
Symmetrical triangle pattern suggests a rebound
The BONK/USDT pair presents a symmetrical triangle pattern on the chart. This pattern forms when the trend continues to develop in a new direction, which could mean a bullish breakout may occur when trading volume begins. However, this pattern has been forming for several months. As it approaches a clear breakout point, volatility may soon increase.
If the volume increases during the breakout, it could drive BONK to set historical highs. The symmetrical triangle is often viewed as an indicator of trend continuation, which means BONK may continue its upward momentum. This technical setup has drawn considerable attention, with traders closely monitoring for signs of increased volume that could confirm this trend.
If BONK can achieve a breakout supported by high trading volume and attract significant investor confidence, it may set new highs.
However, this breakthrough may open the door for short-term traders and long-term investors to enter an upward trend. BONK's price movement has recently created space for hitting historical highs. This could align BONK with market optimism.
MACD and RSI Favor BONK's Rise
On the 4-hour chart, the Moving Average Convergence Divergence (MACD) indicator suggests that momentum may change, potentially leading to a bullish crossover. This pattern, combined with the histogram bars changing from red to light red, indicates a decline in bearish momentum.
If this trend continues, the MACD trend may indicate an early reversal, attracting traders interested in potential upward trends.
Meanwhile, BONK's Relative Strength Index (RSI) appears to be approaching oversold levels at 38.51 – indicating that selling pressure is weakening. As the RSI trend rises, traders may anticipate a rebound if it breaks above 50, which, if accompanied by volume, further supports bullish sentiment.
Potential RSI rebound and bullish MACD will increase technical indicators supporting price recovery. Higher trading volume and sustained buying pressure may confirm this shift, thereby boosting confidence among buyers and traders. As BONK approaches key technical levels, this combination of indicators may lead to increased interest.
BONK's long/short ratio
According to Coinglass, looking at BONK's long/short ratio reveals a balance between traders' bullish and bearish sentiments. The chart uses green bars to represent buying volume and red bars for selling volume, predicting an increase in recent buying volume.
At the time of writing, the long/short ratio hovers above 1.0, indicating an increasing optimism about the possibility of a price rise in the short term.
The fluctuations in this ratio indicate that traders still have differing opinions, but the recent surge in buying volume suggests an increase in bullish sentiment. This pattern aligns with the overall optimistic outlook for BONK, with the long/short ratio indicating a potential shift toward buying pressure. Given that this ratio favors buying volume, it predicts that BONK's price may soon experience greater volatility.
If the buying volume remains strong, this trend could solidify BONK's upward trajectory, potentially encouraging more traders to enter long positions. A surge in trading interest could push BONK's price higher in the coming days, further solidifying its position in the memecoin market.
