In the last two days, the cryptocurrency market witnessed a renewed recovery momentum as Bitcoin price surged to $65000 for the first time since August. The bullish uplifted most major altcoins, including the Dog-themed meme coin BONK. The BONK price currently teasing an upswing breakout from neckline resistance of $0.000023, signaling the potential of a prolonged rally.
BONK Price Eyes 30% Rally with Double Bottom Pattern in Play
Bonk, the Solana-based meme cryptocurrency, took a bullish turnaround in mid-September amid market speculation in the U.S. Federal Reverse rate. The renewed recovery pushed the asset price from $0.0000157 to $0.000023, registering a 47.4% growth.
The recent surge is driven by the announcement of the Bonk Exchange Traded Product (ETP) launch in the U.S., marking a historic milestone as the first meme cryptocurrency to achieve this. An analysis of the daily chart shows that the rising BONK price develops into a well-known bullish reversal pattern called a double bottom.
The chart pattern, shaped as ‘W,’ is often spotted at the major market bottom, signaling an early sign of trend reversal.
With an intraday gain of 10.87%, the buyers teased a bullish breakout from the $0.000023 neckline. A successful flip of the overhead resistance into potential support would drive a 34% rally to $0.000031, followed by $0.0000338.
Check out the article on top meme coins to buy for a detailed analysis.
BONK Derivatives Market Signals Investor Confidence in Rally
According to Coinglass data, the bond funding rate has spiked to 0.0381%, a level not seen since June 2024. Typically, positive rates suggest buyers are willing to pay a premium to maintain long positions, signaling their expectation of a continued rally.
Furthermore, the open interest in futures has surged from $5.44 million to a recent high of $7.81 million, reflecting a growth of 43.5%. This spike implies increased market participation and investor confidence as more traders are opening positions, potentially anticipating significant price movements or trends.
On the contrary, a bearish crossover between the 100-and-200-day Exponential moving average could stall the $0.000023. A reversal from overhead resistance with renewed selling pressure could drive a prolonged consolidation trend.
Frequently Asked Questions (FAQs)
BONK is showing strong bullish momentum driven by a double-bottom pattern, signaling a potential trend reversal
The double-bottom pattern, a well-known bullish reversal formation, suggests BONK may be at a significant market bottom.
According to Coinglass data, BONK’s funding rate has spiked to 0.0381%, indicating that buyers are paying a premium to maintain long positions
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bonk-price-30-reversal-pattern-emerges/
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