Memecoin Eyes 20% Rally Toward $0.00001924 as It Outpaces Solana

Recent market movements and technical analysis suggest that BONK may be on the brink of a significant price surge, outpacing Solana’s broader ecosystem.

Technical Setup for Bonk Price Recovery

According to prominent crypto analyst Altcoin Sherpa, Bonk is showing signs of a potential rebound. In a recent update, Sherpa pointed out that BONK is currently navigating resistance at the $0.000012 mark. However, the analyst believes this hurdle is temporary and anticipates a bullish breakout toward $0.0000145 as the token forms a higher low setup—a pattern typically associated with upward price movement.

BONK appears strong short-term, and despite a potential 200 EMA pullback, current levels seem like a reasonable buying zone. Source: Altcoin Sherpa via X

Sherpa also identified the 200 Exponential Moving Average (EMA) on the four-hour chart as a key support level for the token. This support, combined with potential pullbacks, could offer a favorable entry point for traders looking to capitalize on the expected upward trend.

Sherpa’s analysis ties Bonk’s potential recovery to broader trends in the Solana ecosystem, noting that the growing interest in Solana’s decentralized finance (DeFi) and NFT sectors may provide an additional boost to the token’s momentum.

Bonk’s Strong Market Momentum

Ever since last month, Bonk has experienced a tremendous turn of fortunes with a 21% gain. In solitude, last week, the asset regained nearly 45%, and focus caught up between retail and institutional investors. The present price action is commensurate with overall sentiment direction wherein market players reflect growing positivity regarding Bonk’s future.

Bonk (BONK) was trading at around $0.00001292 at press time. Source: Brave New Coin

Some of the token’s success in the marketplace comes from its community-driven growth and increased social media visibility of Bonk. These are helping to stoke demand as investors move to capitalize on the meme coin’s potential.

Bullish Patterns Signal Further Gains

BONK’s chart recently revealed the formation of a “W” pattern, which is often regarded as a bullish reversal setup. Once the token breaks through the resistance level that is the top of the pattern, analysts predict that it will have a heavy price bounce. According to recent predictions, a breakout could see BONK increase by as much as 38% to $0.00001924. The price level is particularly significant because it lines up with points of liquidity on the chart, meaning further likely upward movement.

BONKUSDT remains in its upward channel, with a key breakout or rejection near the sell-off zone likely to define its next major move. Source: Weslad on TradingView

Other technical indicators such as the Moving Average Convergence Divergence (MACD) and Aroon indicators are also signaling a short-term bullish breakout. The MACD is generally on the rise from a neutral position, showing increasing buying pressure. Similarly, the Aroon Up line is significantly higher than the Aroon Down line, again showing a bullish trend in the market.

Growing Investor Confidence

Recent buying activity indicates increasing investor confidence in Bonk. Notably, $2.6 million worth of BONK was moved to non-custodial wallets, which is a sign that investors are instead opting to hold the token as a long-term holding and not short-term trade. This change in behavior is typically a positive thing since it is a sign of faith in the future growth of the asset.

A bullish breakout of the bearish trendline and a double bottom pattern suggest a potential bullish week ahead. Source: CBas via X

The Open Interest-Weighted Funding Rate, a metric for trader sentiment, also supports the bullish expectation for Bonk. The rate remains at 0.0101%, indicating that the market is overall in favor of long positions and continuing to confirm the likelihood of a price breakout.

What’s Next for Bonk?

With more bullish indicators, technical trends that show more upward movement, and the market experiencing fresh optimism, Bonk seems primed for a rally. While the memecoin market is notoriously volatile, all indicators are that BONK can break through the resistance it faces and move towards new price highs in the coming weeks.

For traders and investors, keeping an eye on major technical levels such as the $0.000012 resistance and 200 EMA support will be crucial in charting the way forward for Bonk. Breaking above these levels will push the token price soaring to the $0.00001924 target, an all-time high for the memecoin.

As with all such coins, interested investors need to be cautious, owing to the high volatility and unpredictable nature of the meme coin. Nevertheless, supported by firm BONK community backing and a sound technical position, the next few weeks can prove to be epoch-making for the token’s life.