Why Bonk Inu price could rally 55% here
- Bonk Inu price has shed 64% from its all-time high of 0.0000294 in under two weeks.
- BONK tagged a key support level of $0.0000129 while being massively oversold.
- The ongoing recovery bounce could mature into a full-blown rally if the meme coin can overcome $0.0000174 hurdle.
- In such a case, BONK could rally roughly 30% and target a retest of $0.0000228.
Bonk Inu (BONK) price has been moving down only since it was listed on major exchanges in mid-December. As a result of this sell-only mentality from investors, it has caused the dog-themed crypto BONK to be oversold. But things could change quickly for the meme coin as buy signals emerge.
Also Read: BONK falls 13% as Solana ecosystem sees profit taking after memecoin frenzy
Bonk Inu price ready to move higher
Bonk Inu price shed 64% between December 14 and 28, which is resembles a bear market-type correction that typically takes a few years. Due to the volatile nature of meme coins, BONK is close to triggering a reversal.
Bonk Inu price seems to have formed a bottom after retesting the $0.0000129 support level, but it is uncertain yet.
The Awesome Oscillator (AO) produced higher lows on December 20 and 28, but the Bonnk Inu price has created lower lows. This non-conformity, termed bullish divergence, often forecasts a reversal in the underlying asset’s price. This bullish signal adds further credence to the potential bottom formation.
If BONK produces a decisive flip of the $0.0000174 hurdle into a support level, it would confirm the presence of bulls that are vying for a reversal. In such a case, Bonk Inu price could catalyze a quick 31% move to the next key resistance level of $0.0000228. In total, BONK holders could realize nearly 55% gains from where the meme coin currently trades – $0.0000152. For more risk-averse investors, a flip of the $0.0000174 level into a support floor could be a great entry point to realize 31% gains.
Also Read: BONK's surge send prices of Solana Saga phone flying to $2K
BONK/USDT 4-hour chart
While the bullish outlook for Bonk Inu price makes sense, it is risky to enter trades before a flip of the key level at $0.0000174. Furthermore, there could be heavy rejection at this level, leading to corrections and a continuation of the downtrend.
Regardless, if Bonk Inu price breaks the $0.0000129 support level and flips it into a resistance level, it would create a lower low and invalidate the bullish outlook. In such a case, BONK could crash 28% and tag the next support level at $0.00000925.
Read More: Shiba Inu Price Prediction: Will BONK profit rotation kickstart SHIB’s 25% rally?
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.
