In the last two days, the cryptocurrency market witnessed a renewed recovery momentum as Bitcoin price surged to $65000 for the first time since August. The bullish uplifted most major altcoins, including the Dog-themed meme coin BONK. The BONK price currently teasing an upswing breakout from neckline resistance of $0.000023, signaling the potential of a prolonged rally.
BONK Price Eyes 30% Rally with Double Bottom Pattern in Play
Bonk, the Solana-based meme cryptocurrency, took a bullish turnaround in mid-September amid market speculation in the U.S. Federal Reverse rate. The renewed recovery pushed the asset price from $0.0000157 to $0.000023, registering a 47.4% growth.
The recent surge is driven by the announcement of the Bonk Exchange Traded Product (ETP) launch in the U.S., marking a historic milestone as the first meme cryptocurrency to achieve this. An analysis of the daily chart shows that the rising BONK price develops into a well-known bullish reversal pattern called a double bottom.
The chart pattern, shaped as ‘W,’ is often spotted at the major market bottom, signaling an early sign of trend reversal.
With an intraday gain of 10.87%, the buyers teased a bullish breakout from the $0.000023 neckline. A successful flip of the overhead resistance into potential support would drive a 34% rally to $0.000031, followed by $0.0000338.
BONK/USDT -1d chart
Check out the article on top meme coins to buy for a detailed analysis.
BONK Derivatives Market Signals Investor Confidence in Rally
According to Coinglass data, the bond funding rate has spiked to 0.0381%, a level not seen since June 2024. Typically, positive rates suggest buyers are willing to pay a premium to maintain long positions, signaling their expectation of a continued rally.
BONK Funding Rate | Coinglass
Furthermore, the open interest in futures has surged from $5.44 million to a recent high of $7.81 million, reflecting a growth of 43.5%. This spike implies increased market participation and investor confidence as more traders are opening positions, potentially anticipating significant price movements or trends.
On the contrary, a bearish crossover between the 100-and-200-day Exponential moving average could stall the $0.000023. A reversal from overhead resistance with renewed selling pressure could drive a prolonged consolidation trend.
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