The price prediction for BONK suggests a potential 55% rally amidst the ongoing market recovery, with key resistance expected within a rising wedge pattern. Despite market uncertainties, experts like Ki Young Ju dismiss concerns about the Mt. Gox Bitcoin sale affecting the market significantly, citing robust Bitcoin demand and manageable liquidity.
Current Market Rally
The daily chart for BONK shows a notable 4-day rally amid the broader market recovery. Starting from a low of $0.000022, the meme coin has surged 28% to trade at $0.000028, bringing its market cap to $1.94 billion. This bullish trend recently broke through the immediate monthly resistance at $0.000027, forming a bullish reversal pattern.
Technical Indicators and Market Sentiment
Exponential Moving Average (EMA): BONK’s price moving above the daily EMA (20, 50, 100, and 200) suggests an upward path with minimal resistance.
Relative Strength Index (RSI): The daily RSI slope above 60% indicates a high momentum rally for BONK.
Potential Impact of Mt. Gox Bitcoin Sale
Ki Young Ju, CEO of CryptoQuant, has addressed the fear, uncertainty, and doubt (FUD) surrounding the potential sale of Mt. Gox’s Bitcoin holdings. Ju pointed out that the market has seen substantial growth in Bitcoin's market cap, outpacing realized cap growth, signaling strong demand. Since 2023, $224 billion worth of Bitcoin has been sold, yet the price has surged by 350%. Even if Mt. Gox’s $3 billion worth of Bitcoin were sold, it would only represent 1% of the realized cap increase during the current bull cycle, indicating manageable market liquidity.
Price Movement and Future Projections
Following a recent market correction, BONK’s price has risen from a local bottom at $0.00018, closely aligning with the support trendline of a rising wedge pattern. This accumulation phase has led to a 56% increase within two weeks, reaching $0.000028. The price also achieved a decisive breakout from a double-bottom reversal pattern.
Outlook and Resistance
The prediction suggests that BONK could see a 55% rally before hitting significant resistance within the rising wedge pattern. If the trend lines hold, BONK, a Solana-based meme coin, might continue in a consolidation phase. However, if the overhead trendline remains firm, BONK’s price could face a fresh correction.
As the market recovery extends, traders and investors are closely watching these technical indicators and market movements to navigate potential gains and risks in the BONK market.
Conclusion
BONK’s bullish outlook and potential 55% rally highlight the dynamic nature of the cryptocurrency market. While technical indicators show positive signs, the impact of broader market factors, such as the Mt. Gox Bitcoin sale, remains a point of consideration. Investors should stay informed and cautious as they navigate these developments.
For further details and updates, visit CryptoQuant and other reliable crypto news sources.
Notice:
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