BONK Price Could Potentially Surge by 20% as Bulls Take Control
Solana-based memecoin Bonk (BONK) has shown sideways movement during the week, leaving traders undecided. However, a bullish divergence is forming as a key indicator suggests an uptrend.
Currently, BONK price has comfortably maintained gains above the essential EMAs and is attempting to break through the primary resistance level at $0.00002400.
The bullish sentiment stems from a recent breakout on the chart, where the memecoin surpassed a trendline barrier and successfully retested the region.
This sets the stage for a potential higher high swing above $0.00002400, which could result in a 20% surge in the upcoming sessions.
BONK’s Directional Movement Index (DMI) also points towards a slightly bullish momentum, with the positive DI outweighing the negative DI. This indicates that buying pressure has surpassed selling pressure.
At the time of writing, BONK price is trading at $0.00002327, experiencing a minor intraday drop of 1.11% but still showing a weekly surge of approximately 10%.
The BONK/BTC pair is currently at 0.000000000340 BTC, with a volume-to-market cap ratio of 0.0724.
With a market capitalization of $1.72 billion, the memecoin holds the 50th position among the top 100 cryptocurrencies.
According to the Bonk price prediction, the golden cross formation of the 20-day EMA line crossing above the 50-day EMA line indicates the potential for a 20% rally in the coming days. This suggests a bullish shift in momentum and foretells upward price movement.
Furthermore, when the shorter EMA crosses above the longer EMA, it confirms the continuation of the short-term bullish trend.
Well-known crypto analyst cryptopunkrock recently highlighted that BONK crypto bounced off the 23.6% Fib level and showed signs of accumulation.
If the daily close goes above the descending trendline at $0.00002400, it would lead to another crossover of the 50-day and 200-day EMAs.
The Relative Strength Index (RSI) line is currently above the midline region, around 56, indicating a positive divergence and signaling a bullish outlook for BONK.
Similarly, the Moving Average Convergence Divergence (MACD) indicator shows bullishness, as the MACD line remains above the signal line, suggesting a positive stance.
Coinglass data reveals mixed cues from the Netflow graph. While more traders are withdrawing their BONK from exchanges, demonstrating a positive sentiment, the long/short ratio stands at 0.9444, favoring long side trades.
Additionally, Open Interest (OI) has experienced a minor decline of 3.20% to $8.31 million, indicating a slight long unwinding movement over the past 24 hours.