Bonk [BONK], the popular Solana-based memecoin, is making waves in the cryptocurrency market, showcasing a bullish price action pattern that could signal a massive upside rally. After a recent market decline on December 10, the overall cryptocurrency space appears to be recovering, with heightened interest in assets like Bonk that are poised for a breakout.
Whale Activity Sparks Confidence in BONK
A key factor contributing to Bonk’s growing momentum is the increased interest from whales and long-term holders. According to on-chain analytics firm Coinglass, BONK has experienced a substantial outflow of $45.73 million from exchanges, signaling confidence among large investors. This outflow trend has been building since early December 2024, even during periods of price retracement. In the cryptocurrency market, outflows typically indicate that assets are being moved to private wallets, which could signal an anticipated price rally and potential buying opportunities.
Technical Analysis: Bullish Reversal in Play
Technical indicators reveal strong bullish signals for Bonk. AMBCrypto’s technical analysis highlights that BONK has successfully retested its breakout level from an ascending triangle pattern, a formation known for signaling potential upward movements. Despite a recent price dip, BONK has found support and formed a bullish engulfing candle pattern, which typically marks the beginning of a reversal.
Looking ahead, there is a strong possibility that BONK could see a 40% price increase, with a potential target of $0.0000545. If the bullish momentum continues, the memecoin could soar by up to 250%, potentially reaching a long-term target of $0.000137.
RSI Signals Potential Reversal
An important technical indicator to watch is the Relative Strength Index (RSI), which at press time stands at 46—near the oversold region. When an asset’s RSI nears the oversold area, it often signals that a price reversal is imminent. This further strengthens the case for a potential surge in BONK’s price in the coming days.
Also Read: Bonk [BONK] Charts 200% YTD Gain: Double-Bottom Pattern Signals New All-Time High Ahead
Currently trading at $0.000395 after a 5.65% price increase in the last 24 hours, BONK’s bullish outlook is backed by both technical analysis and growing interest from large investors, setting the stage for a potentially significant rally.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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