BON bullish sentiment rises as it breaks key resistance | Credit: Hameem Sarwar
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Key Takeaways
BONK is one of the top gainers out of the top 100 cryptocurrencies today.
It hit this milestone after breaking out of a wedge formed in November.
BONK could rally above a crucial resistance if momentum remains bullish.
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.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
