Amidst the buzz surrounding the eagerly awaited approval of Spot Bitcoin ETFs, the meme coin Bonk, residing on the Solana blockchain, has showcased an impressive recovery from its recent support level of $0.00000936 earlier this week. This bullish reversal has marked a 92% surge, with the price reaching a peak at $0.00001795. During this upward movement, the 4-hour chart has revealed the emergence of a bullish reversal pattern known as an inverted head and shoulders, signaling potential further growth for the meme coin.
Despite the recent green light for Spot Bitcoin ETFs, Bitcoin’s performance has been lackluster, casting a shadow of uncertainty across the cryptocurrency market. This sentiment has triggered a correction across major cryptocurrencies, including BONK, which witnessed a notable dip to $0.000009898.
The observed chart pattern indicates the possibility of buyers driving the price up by an additional 22%, aiming to breach the neckline resistance at $0.0000177. A successful bullish breakout above this level would offer a more robust indication of a trend reversal, potentially setting BONK on a course to target $0.0000257.
A Novel Bullish Formation Propels BONK Rally to $0.00002: • The emergence of an inverted H&S pattern serves as an early signal of a potential trend reversal. • A bullish crossover between the 50 and 200 EMA is anticipated to fuel increased interest in the BONK token.
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Why Bonk Faces a 30% Downside Risk
The recent correction in BONK’s price found stability at a convergence of support—the $0.000010 mark and the 50% Fibonacci retracement level. This level of retracement is often perceived as a healthy consolidation within the context of a more extended uptrend, representing a crucial zone where buyers must assert control to sustain the asset’s bullish momentum.
However, if BONK fails to uphold its ongoing recovery trajectory, a breach below the $0.0000095 support level could intensify selling pressure. This potential breakdown might lead to a substantial 30% decline in the value of the meme coin, possibly bringing its price down to $0.000007.
Conclusion
Monitoring Bitcoin’s price is crucial for assessing Bonk’s trajectory. If Bitcoin’s price trends lower, a retest of resistance at 0.000095 can be anticipated. Conversely, if Bitcoin maintains a sideways or upward trajectory, Bonk is likely to experience growth.
