Double-bottom Pattern Hints 120% Rebound as TRUMP Token Triggers 900M impact

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Double-bottom Pattern Hints 120% Rebound as TRUMP Token Triggers 900M impact – Crypto News

Published

1 year ago

February 1, 2025

Dripp

BONK price rose to $0.25 on Friday, up 9% in the last 3 days as bulls regained control after a rut of 7 consecutive losing days last week. While technical indicators showing further upside potential, TRUMP ton

BONK price rebound begins after week-long losing streak

BONK price experienced intense volatility as Solana’s memecoin ecosystem became a hotbed of speculation this week.

After a sluggish start, BONK bulls regained control towards the weekend, reversing a seven-day losing streak that saw it decline by 30% after Trump’s inauguration.

BONK price action | BONKUSDT

Following a steep 30% decline last week, BONK price bounced back on Wednesday, rising 9% from $0.22 to $0.26 over the past three days.

This recovery signals renewed interest in the token, with traders seizing the opportunity to re-enter the market.

Market sentiment also played a role in this rebound.

With Solana memecoins drawing increased attention, BONK saw renewed optimism despite broader crypto market uncertainties.

As of Feb 1, BONK traders remain watchful for further developments surrounding altcoin ETFs, which could potentially drive up institutional capital towards the Solana ecosystem.

BONK volumes have plunged 80% since TRUMP token launch

While major market events—including Trump’s crypto endorsement, memecoin sector volatility, U.S. Fed policies, tariffs, and the DeepSeek vs OpenAI AI rivalry—dominated headlines, BONK has struggled to maintain traction amid Trump-related market shifts.

TRUMP’s meme token launch on January 20 significantly impacted Solana’s memecoin landscape, triggering volatility and shifting market dynamics.

Within 24 hours of launch, the TRUMP token surged to a $12 billion market cap, overtaking BONK’s dominant position.

While TRUMP has since faced corrections, it still holds a commanding $4.9 billion valuation, dwarfing BONK’s $1.8 billion market cap.

The shift in capital allocation has negatively affected BONK’s market fundamentals, particularly its trading volume.

BONK Price Daily Trading Volume | Source: Santiment

Santiment‘s trading volume trends indicate a significant decline in BONK’s liquidity since the TRUMP token launch. On January 19, 1.2 billion BONK tokens were traded. That figure has since plummeted to just 220 million tokens traded on January 31—an 83% drop. This decline suggests waning investor interest in BONK and weakening dominance as the TRUMP token encroaches market share.

A sharp drop in trading volume often signals weaker momentum, making it harder for BONK to sustain significant price gains.

If investor demand remains skewed toward TRUMP, BONK could struggle to break key resistance levels.

Hence, with the $TRUMP token actively encroaching market share, BONK’s recovery may remain slow, despite a bullish media sentiment surrounding Solana-based memecoins.

BONK Price Forecast: Double-bottom pattern hints $0.57 breakout, but there is a catch

BONK price forecast charts currently depicts a classic double-bottom pattern, suggesting a potential bullish reversal with a projected breakout target near 0.00005500. However, despite this optimistic formation, bearish pressure remains dominant.

The price is currently trading at $0.000024, struggling to reclaim the VWAP at $0.000026, a critical level that could determine the next directional move.

The failure to break above this dynamic resistance keeps the downside risk elevated, with weak bullish momentum failing to sustain gains.

Despite a minor rebound, the recent 9.93% bounce lacks the strong volume required to confirm a sustainable reversal.

The broader trend remains bearish, reinforced by a steep 30% decline over the past seven days.

A decisive close above the VWAP could accelerate momentum toward the psychological barrier of 0.00003426.

Conversely, failure to sustain above 0.00002400 may invite further downside, extending losses to 0.00002128 or lower.

Frequently Asked Questions (FAQs)

The double-bottom pattern projects a bullish breakout to $0.000055, but weak volume and resistance at $0.000026 cast doubt on its near-term viability.

The TRUMP token’s rise diverted liquidity, causing BONK’s trading volume to drop by 83%, weakening momentum and making a breakout harder to sustain.

Resistance is at $0.000026 and $0.00003426, while support sits at $0.00002128. A failure to reclaim VWAP could lead to further downside pressure.