Bonk (BONK), the first memecoin minted on the Solana (SOL) network, has garnered significant attention in the crypto world with its notable growth in December 2023. Despite a recent pullback, Bonk continues to show signs of stable growth, currently ranked 75th among cryptocurrencies with a market cap of $922 million, made more impressive by over 60 trillion of its 100 trillion supply in circulation.
In December 2023, Bonk’s price surged over 310%, making it one of the best-performing altcoins in the crypto market. This volatility has turned it into a potential long-term investment, despite a subsequent 50% drop from its peak. Technical indicators such as the Moving Average Convergence Divergence (MACD) signal an upcoming bullish trend, while the Relative Strength Index (RSI) above 50 supports bullish market sentiment. Bollinger Bands (BB) suggest a possible consolidation, indicating decreased volatility.
The 4-hour price chart shows a battle between buyers and sellers, with buyers managing to keep the price above the marked EMA 50 at $0.00001178, leading to a recovery to the supply zone at $0.00001393. A double bottom formation, often indicative of a potential bullish trend, is also present on the BONK/USD chart.
Momentum has shifted significantly in the last hour as buyers, or bulls, gathered enough strength to overcome a minor resistance level at $0.00001626, pushing the price to the day’s high and momentarily nearing $0.00001789, corresponding to MA 10.
Currently, 25 main indicators for BONK show cautious optimism with a neutral market sentiment, with 6 indicating sell, 7 neutral, and 12 buy signals. Oscillators reflect a similar pattern with 2 selling, 6 neutral, and 3 buying signals. Moving Averages are more bullish, with 4 selling, 1 neutral, and 9 buying signals. Despite the MACD indicator being in the negative zone and offering a sell signal, the RSI is at a neutral level of 31.
Bulls are said to be targeting $0.0000170, corresponding to the daily EMA 20. Should the upward momentum not continue, there’s a risk of the price retracting to the main support at $0.0000138. Failure to hold this level could lead to a pullback towards $0.0000130 and a drop to $0.000007721, corresponding to EMA 100.