Key Takeaways
After rising by 14% in the last 24 hours, BONK has held its place as the memecoin with the highest gain. Unlike previous times, this BONK breakout suggests that the rally may not be over as momentum strengthens.
Interestingly, the price increase also comes amid a surprise BONK ETF application, which some predict could drive higher prices. With bullish sentiment on the rise, can BONK price sustain the hike?
On Jan. 21, BONK price was $0.000028. As of this writing, it has increased to $0.000032.
Still, the increase remains far below the value it was in November. Around that period, the memecoin’s value was $0.000055.
But by Jan. 14, the cryptocurrency’s price had dropped to $0.000026, resulting in a falling wedge. A falling wedge is a bullish reversal pattern formed by two descending trend lines.
Here, the upper trendline connects the lower highs while the lower one links the lower lows. As seen below, BONK’s rise to $0.000032 has helped it break out of this wedge pattern, indicating that the rally will likely continue.
From an on-chain perspective, CCN observes that the Weighted Sentiment around BONK has jumped high.
Weighted Sentiment checks whether the comments related to a cryptocurrency are mostly bullish or bearish. When the reading is positive, it implies that most remarks are positive, which could play a key role in increasing demand.
On the other hand, a negative Weighted Sentiment indicates gloomy comments. In that case, demand for the token could decline.
Thus, the metric’s positive reading implies that BONK’s price is likely to hit higher highs in the short term.
In the meantime, another look at the daily chart shows that the Moving Average Convergence Divergence (MACD) has flipped from negative territory to positive.
The MACD is a technical indicator that measures momentum. When it is positive, momentum is bullish; when it is negative, momentum is bearish.
Since it is the former, momentum around BONK is bullish. As such, the BONK breakout might continue to accelerate.
If sustained, BONK price might rally above 0.786 Fibonacci level at $0.000050. If this prediction gets validated, the memecoin might hit $0.000055, representing nearly 70% price increase.
Alternatively, if BONK’s price falls below the upper trendline of the falling wedge, this bullish thesis might not become a reality.
In that scenario, the token’s value could decline to $0.000027.