Solana meme coin Bonk Inu price defies ETF FUD and rallies 22%
- Bonk Inu price has rallied 22% in the last seven hours and eyes more gains.
- This uptrend could come after a minor retracement and a potential retest of $0.0129.
- A breakdown of the $0.0125 swing low would invalidate the bullish thesis for BONK.
Bonk Inu (BONK) price has inflated by 22% and hints that a further upswing is possible if key conditions are met. Interestingly, this rally comes amid fake ETF approval news from the compromised US Securities and Exchange Commission’s (SEC) social media account, X (formerly Twitter). Sidelined buyers might get the opportunity to buy the Solana-based meme coin BONK as a potential pullback could be underway.
Read more: This ‘SILLY’ Solana meme coin is making records after Bonk, rallying by 160% in a week
Bonk Inu price overcomes the odds
Bonk Inu price shows signs of recovery and trend reversal after shedding nearly 73% in the last three weeks or so. This slow bleed seems to be turning around as BONK rallied 68% in just 48 hours. This upswing has overcome the daily resistance level at $0.0129, which coincides with the highest traded volume level since December 8, 2023.
Due to the recent flip of this key hurdle into a support level, investors can expect a trend reversal. But a continuation of this uptrend might occur after a brief pullback. The Relative Strength Index (RSI) has pushed into the overbought conditions, while the Awesome Oscillator (AO) has flipped above the mean level. The RSI’s move hints at a potential pullback, while both the RSI and AO are suggesting an overall bullish outlook.
The demand zone, extending from $0.0125 to $0.0133, is the next key accumulation zone for sidelined buyers. A bounce here could propel BONK to the next key hurdle at $0.0179, which would constitute a 34% gain.
BONK/USDT 4-hour chart
While Bonk Inu price is nowhere close to undoing the bullish outlook, a breakdown of the $0.0125 to $0.0133 demand zone on the four-hour time frame will create a lower low. This development would invalidate the bullish thesis and potentially kickstart a 12% correction to the $0.0109 support level.
Read more: BONK falls 13% as Solana ecosystem sees profit taking after memecoin frenzy
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
