Markets
Solana Meme Coin will sustain 4% surge in bloody cryptocurrency market
Bonk Price Prediction: The cryptocurrency market is in the red and this may cause concern and fear among investors. As discussed in Bitcoin price prediction, declines could extend to $66,000 and $64,000, confirming a deep downtrend this week. If this bearish scenario takes hold, it would be difficult for altcoins to establish a recovery picture that suggests further losses in June.
However, the bearish outlook has not affected everyone cryptocurrencies. Second CoinGecko’s date, Bonk, a well-known meme coin in the Solana ecosystem, is in the green after maintaining a 4% increase in 24 hours to settle at $0.00002785.
With a 35% increase in trading volume to $331 million, Bonk appears to be a favorite among traders on Tuesday. Unlike other altcoins to buy this week, BONK holds a 1.18% spike in market cap to $1.89 billion, further underscoring the bullish hold.
Bonk Price Prediction: On the verge of validating a larger breakout
After rising to $0.0000444 on May 28, Bonk began to suffer under the influence of investors’ profit-taking. The decline coincided with a general downward trend in the market.
The bond price declined within the confines of two right-sloping trend lines, thus forming an almost mature descending wedge pattern. The upper trend line indicated intensifying resistance, while the lower trend line ensured that the memetic currency he did not enter a vicious spiral.
Several temporary support areas failed to absorb the selling pressure, including areas marked by exponential moving averages (EMAs), such as the blue 20-day EMA, red 50-day EMA, and red 20-day EMA. 200 days in purple.
Bonk Price Prediction Chart | Tradingview
The downtrend continued until BONK reached $0.000026. Due to heavy buyer congestion in this area, a recovery has begun, ignoring the selling in the market ahead of the CPI data that will be released on June 12th.
The bulls appear to be regaining strength, as observed with Relative Strength
(RSI) bouncing into the neutral area above 30. If the uptrend of the RSI continues towards overbought, the path of least resistance will reverse to the upside.
Bonk will also need to recover the position above the 20-day EMA, currently at $0.000028, and push for a daily close. Such a development will help consolidate the bullish return and validate the bullish trend that will open over the weekend.
The presence of the descending wedge pattern is another bullish signal that cannot be ignored by traders. A break above the upper trend line will validate the pattern’s impact on the price.
Traders can place multiple buy orders slightly above the trend line, anticipating a broader breakout targeting $0.00004. A spike in volume is expected to accompany the breakout.
The RSI must also break the descending trend line to break the bearish divergence formed with the price. Such a move will go a long way in validating the turnaround.
Further losses below the wedge pattern cannot be ruled out. However, if this happens, traders can DCA thereby lowering the average entry position and maximizing profits when the Bonk price exceeds $0.00004.
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