- BONK traders eyeing a potential 53% price surge with symmetrical triangle pattern
- SEC’s regulatory shift a good sign for BONK
BONK was trading at $0.00002615 at press time, with a 24-hour trading volume of $226,615,807 as per Coingecko data. BONK recorded a decline of -3.39% in 24 hours, with the crypto down by -8.25% over the past week too.
Despite the recent downtrend, however, BONK seemed to be showing signs of approaching a potential support zone around $0.00002500 – A level that has been tested multiple times and held firm.
BONK’s price position right now is at a critical juncture, hovering near key moving averages, including the EMA 20 at $0.00002623 and the EMA 50 at $0.00002636.
Symmetrical triangle pattern and potential breakout
BONK, at the time of writing, was forming a symmetrical triangle pattern, indicating a period of consolidation that typically precedes a breakout. Should the price break above the resistance level at $0.00003250, it could lead to a significant upward movement towards the target price of $0.00005000.
In fact, this would represent a potential 53.13% hike from the breakout point.
Source: BONK/USD, TradingView
At the time, the Relative Strength Index (RSI) stood at 47.73, suggesting a neutral market stance, while the Awesome Oscillator (AO) indicated slight bearish momentum with a value of -0.00000181.
Now, market participants are closely monitoring the price action, particularly around the EMA 50 and EMA 20 levels, as staying above these averages is crucial for maintaining bullish momentum. The support level at $0.00002500 and the resistance at $0.00003250 are key to determining the next direction for BONK.
Regulatory news and market sentiment
The recent decision by the SEC to retract its classification of Solana (SOL) and other digital assets as securities has created a positive sentiment in the broader crypto market. This development is seen as a partial victory for digital assets and may positively influence BONK, given the interconnected nature of the market.
In fact, market observers believe that this regulatory shift could spill over to BONK, potentially setting the stage for a rally as the setup appears ripe.
This historical context underscores the volatility and potential of BONK in the crypto market.
Moreover, recent assessments by ABMCrypto highlighted the presence of a large reserve of liquidated tokens at $0.00002838, posing both an opportunity and a challenge for BONK’s price.
Reaching this level may lead to further liquidations, which could push the price up. However, the significant number of shares at this level could also act as a strong resistance.
The token has seen some volatile price action lately, mirrored by fluctuations in open interest. Increases in open interest during recent price hikes indicate more bullish trades and greater trader optimism.
However, declines in open interest have historically preceded sharp price drops, suggesting periods of profit-taking or liquidations.
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