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Bonk Price Breaks 2-Month Consolidation Amid Market Rally, What’s Next? – Crypto News

Published

11 months ago

May 21, 2024

Dripp

The cryptocurrency market began the new week with strong bullish momentum, led by Ethereum’s recent surge to $3800. In the past 24 hours, ETH’s price has increased by 22%, fueled by market excitement over the first spot Ethereum ETF. This rally has spurred notable gains across major altcoins, with Solana-based Bonk standing out as one of the top performers, recording a 33% price increase.

Also Read: Crypto Price Prediction 21/5: Ethereum ETF Hype Fuels Major Market Rally

BONK Memecoin Targets $0.000047 After Breaking Key Resistance

Bonk Price| Tradingview

The cryptocurrency market experienced nearly $400 million in liquidations over the past 24 hours, according to data highlighted by Dominando Cripto. The majority of these liquidations were from short positions, with Bitcoin and Ethereum alone accounting for $218 million of the total.

Current market data shows $69.12 billion in open interest, reflecting the total number of outstanding derivative contracts yet to be settled. The volume in the past 24 hours reached $212.01 billion, and the liquidation volume hit $387.26 million. Notably, the market’s long-short ratio stands at 2.46, indicating a significant increase and demonstrating a strong inclination towards long positions.

The BONK memecoin entered its current recovery trend in late April, after maintaining a price above $0.000013. The bullish turnaround propelled the asset value 148% to currently trade at $0.0000328.

An analysis of daily charts shows the recovery developed an inverted head and shoulder pattern— a chart setup often interpreted as the bottom formation and a precursor for prolonged recovery.

Amid the market excitement around the potential approval of ETH ETFs, the BONK price recorded a 7.8% jump today and breached the neckline resistance of $0.00003.

If the Bonk price sustains a recent breakout, the buyers will obtain a suitable footing to prolong its rally to $0.000047, followed by $0.0000712.

Technical Indicator:

Exponential Moving Average: A sharp upswing in daily EMAs(20, 50, 100, and 200) indicates the buying activity is aggressive among traders.
Average Directional Index: The daily ADA slope rising 23% suggests the buyers have sufficient momentum to lead a higher rally.