BONK Price Rebounds After 10% Pullback, Targets Breakout Above Recent Highs

Key Takeaways

• BONK is trading inside an ascending channel on the daily chart, which is typically a bullish sign with higher highs and lower lows.
• On the 4-hour chart, the Chaikin Money Flow (CMF) has moved above the zero line, suggesting rising accumulation.
• If BONK surpasses the $0.000024 resistance, it could rally toward $0.000033, with $0.000028 as a key Fibonacci barrier.

After the price fell by 10% in the past seven days, Solana-based memecoin Bonk (BONK) shows signs of recovering. In the last 24 hours, BONK’s price has increased by a mild 3.65%.

This brings the market value to $0.000020. Sometimes, an uptick like this ends in a false breakout.

However, according to several indicators, BONK does not seem likely to experience such a fakeout in the short term.

BONK Reclaims Bullish Trend

On the daily chart, BONK’s price has formed an ascending channel. Also called a rising channel, an ascending channel is a bullish price pattern showing asset trading between two upward-sloping parallel trendlines.

The upper trendline represents higher highs, indicating resistance. The lower trendline of the channel represents higher lows, indicating support.

Alongside the ascending channel, the BONK/USD daily chart shows that the Money Flow Index (MFI) has increased to 66.79. The MFI measures the overall flow of capital in and out of a cryptocurrency.

When it increases, the MFI indicates rising buying pressure. Conversely, a decrease in the MFI suggests selling pressure.

Therefore, the recent upswing in the indicator implies intense buying pressure. Should this trend remain the same, BONK’s price will likely see an extended price increase in the short term.

BONK Price Analysis: Another High Next

In addition, CCN also examined the 4-hour BONK/USD chart. During this timeframe, we observed that the Chaikin Money Flow (CMF) has risen above the zero signal line.

The CMF is a technical indicator measuring the distribution and accumulation level. When the CMF is below the signal line, it indicates selling pressure.

In this case, increasing the price becomes challenging, and a correction follows. On the other hand, an increase in the CMF reading indicates accumulation.

Since this is the case with BONK, the memecoin’s market value will likely soon trade higher than the recent local high.

If this trend continues, BONK’s price is likely to break above the upper resistance level at $0.000024. Once successful, the memecoin’s market value might climb as high as $0.000033.

However, traders might need to watch out for the resistance at $0.000028 to validate that. This position is at 0.50 Fibonacci resistance, a key level for the memecoin.

On the flip side, if the token fails to break past the resistance at $0.000024, this forecast might not happen. The memecoin’s market value might decline below $0.000014 in that scenario.