Markets
Solana Meme Coin Will Sustain 4% Rise in a Bloody Crypto Market
Fantastic Price Prediction: The cryptocurrency market is in the red and this could be causing concern and fear among investors. As discussed in Bitcoin Price Prediction, declines could extend to $66,000 and $64,000, confirming a deep downtrend this week. If this bearish scenario takes root, it will be difficult for altcoins to establish a recovery structure that indicates further losses in June.
However, the downward outlook did not affect everyone cryptocurrencies. According to CoinGecko’s dice, Bonk, a well-known meme coin in Solana ecosystem, is in the green after maintaining a 4% increase in 24 hours, hovering at $0.00002785.
With a 35% increase in trading volume to $331 million, Bonk appears to be traders’ favorite on Tuesday. Unlike other altcoins to buy this week, BONK maintains a 1.18% increase in market value to $1.89 billion, further underscoring bullish control.
Bonk Price Prediction: About to Validate a Bigger Breakout
After rising to $0.0000444 on May 28, Bonk began to struggle under the influence of profit-taking investors. The recession coincided with a general downward trend in the market.
Bonk price fell within the boundaries of two right-sloping trendlines, thus forming an almost mature falling wedge pattern. The upper trendline signified intensifying resistance, while the lower trendline ensured that the meme coin did not enter into a violent pirouette.
Several tentative support areas failed to absorb the selling pressure, including areas marked by exponential moving averages (EMAs) such as the 20-day EMA in blue, the 50-day EMA in red, and the 200-day EMA in purple.
Bonk Price Prediction Chart | Trading view
The downtrend continued until BONK reached $0.000026. Due to solid buyer congestion in this area, a recovery began, ignoring the sell-off in the market ahead of the CPI data to be released on June 12th.
Bulls appear to be regaining strength as seen with Relative Strength
(RSI) as it recovers to the neutral area above 30. If the RSI uptrend continues towards overbought, the path of least resistance will turn to the upside.
Bonk is also required to reclaim position above the 20-day EMA, currently at $0.000028, and push for a daily close. Such a development will help solidify the bullish return and validate the weekend uptrend.
The presence of the falling wedge pattern is another bullish signal that cannot be ignored by traders. A break above the upper trendline will validate the pattern’s impact on price.
Traders may enter more buy orders slightly above the trendline in anticipation of a larger breakout targeting $0.00004. An increase in volume is expected to accompany the breakout.
The RSI must also break the descending trend line to break the bearish divergence formed with the price. Such a move will go a long way towards validating the trend reversal.
Further losses below the wedge pattern cannot be ruled out. However, if this happens, traders can do DCA, thereby reducing the average entry position and maximizing profits when the Bonk price recovers beyond $0.00004.
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