BONK Jumps 30%, Still Trapped in Descending Channel Pattern

Key Takeaways

• BONK saw a 400% rally followed by a 75% drop.
• A descending triangle suggests a possible bullish breakout.
• Key resistance levels at $0.000026 and $0.000033.

The BONK price has experienced significant price swings in 2024, ranging from massive gains to sharp corrections.

After consolidating for several months, the token shows signs of a potential bullish breakout. It started gaining traction on Oct. 10 but is now at its most significant descending resistance, dating from March.

A breakout above would be considered highly significant.

BONK Price Analysis

On March 5, 2024, the BONK price reached an all-time high of $0.00003771, marking a nearly 400% increase from its February low.

However, this rally was followed by a steep 75% drop, with the price declining to $0.000012 by April 13.

The price rebounded to $0.000044 on May 29 but fell again to $0.000020 by June 24. Another lower high of $0.000034 was reached on July 21, followed by a new low of $0.000015 on Aug. 5.

The price then entered a consolidation phase, retesting its August low on Sept. 6 and 18. A subsequent rally pushed the price to $0.000026 on Oct. 1.

However, the Relative Strength Index (RSI) signaled overbought conditions, hinting at a rejection near the descending channel resistance that began in March.

Following this, BONK faced resistance, dropping to $0.000019 by Oct. 3 and retesting this level on 10 before breaking out to the upside.

However, after gaining 30%, it made a lower high of $0.000025 at the descending channel resistance. 

BONK likely completed its WXY correction, with the rise since Sept. 6 signaling the start of a new bullish phase.

A breakout above the descending resistance would strongly confirm this uptrend.

BONK Price Prediction

A closer look at the hourly chart reveals a potential five-wave impulse pattern that began on Sept. 6, with the final wave completing on Oct. 1.

The failure to break past the $0.000026 resistance resulted in a pullback to the 0.618 Fibonacci retracement level.

While this retracement occurred sharply, it suggests the potential for a typical corrective phase.

Following the five-wave sequence, a three-wave retracement was expected, targeting the 0.618 Fibonacci level at $0.000019. The price found support at this level, hinting at the possibility of a new uptrend.

The descending flat triangle formed as the price held at the 0.618 Fib level during the latest decline, likely completing a three-wave correction. A breakout occurred, with two scenarios ahead. 

Either BONK started a new uptrend after its recent low on Oct. 10. this new advancement could bring BONK to a higher high of $0.000033 or $0.000037, reaching some of the Fib extension levels. 

Alternatively, its previous high was only wave three, making the current rise its final one in a five-wave sequence.

But even in that case, BONK should overcome its current descending resistance and surpass its prior high of $0.000026.