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BONK Falling Wedge Breakout Sets Stage for Potential 70% Rally

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Victor Olanrewaju
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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?

The Solana Memecoin Rises Above Major Resistance

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.

BONK price analysis shows falling wedge formation
BONK/USD Daily Chart | Credit: TradingView 

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.

BONK sees bullish sentiment
BONK Weighted Sentiment | Credit: Santiment 

BONK Price Prediction: Rally to Accelerate

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.

BONK memecoin price analysis
BONK/USD Daily Chart | Credit: TradingView 

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.
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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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