Is there a bullish potential to seize ?
The cryptocurrency BONK is currently at a crucial technical point. After a 67% increase in a month, driven by the rebound of Ethereum, BONK is undergoing a retest of a key resistance level.
On the daily chart, the token has formed a bullish chart pattern in a cup and handle formation. This is a technical signal often seen as a precursor to a trend reversal. After breaking the resistance at $0.000020, BONK reached a local peak at $0.000025 before experiencing a technical correction.
Currently, the price is hovering around the $0.000019-$0.000020 zone, which corresponds to the former resistance level now turned into support. The short-term future of BONK hinges on this level.
Two Possible Scenarios for BONK
Bullish Scenario:
- If the $0.000020 support holds, a new rebound towards $0.0000312 is possible, representing a potential of +40%.
- The maintenance of the positive momentum of Ethereum could strengthen this recovery scenario.
Bearish Scenario:
- If the support breaks, a return to the moving average or the lower zone at $0.000016 cannot be ruled out, thus nullifying the technical breakout.
The ability of BONK to bounce back from this pivotal level will greatly depend on the overall direction of the crypto market, especially Ethereum’s behavior. If the leading altcoin continues its upward trend, it could breathe new life into the meme cryptocurrency on all exchanges.
$0.0000312 in Sight
The “cup and handle” chart pattern suggests a technical target of $0.0000312. Although this target implies a substantial gain of over 40%, investors will need to remain vigilant of several factors:
- The trading volumes that should accompany any rebound
- The technical indicators like RSI and MACD on the daily timeframe
BONK is at a decisive turning point. Consolidation above the former breakout point could trigger a new bullish acceleration. In the coming days, informed crypto traders will closely monitor the behavior of this memecoin.
