BONK's symmetrical triangle suggests a breakout, with the possibility of a large bullish wave.
Volume and open interest spike as traders prepare for a potential price explosion.
Bonk [BONK] is consolidating in a narrow range, approaching a breakout point. The price has followed a symmetrical triangle pattern, a signal that often indicates an upcoming move.
The World of Charts analyst predicts that if there is a breakout, it could lead to a bullish wave in the coming weeks. Notably, BONK is approaching the apex of the triangle, suggesting that a breakout could happen soon.
World of Charts also highlights the potential for breakouts based on this symmetrical triangle pattern. This chart formation often leads to price volatility, as consolidation occurs before a decisive move in either direction.
Source: X
For BONK, the consolidation inside the triangle has been going on for several months.
As the price approaches the apex of the triangle, both traders and analysts are eyeing a breakout, which could push the price up in the near future.
Technical indicators signal bearish momentum
Looking at BONK on the 4-hour chart, the price is holding above the key support level of $0.00002107 at press time.
The 50-period and 100-period EMAs are acting as dynamic supports, but price recently tested the 50-EMA, suggesting the possibility of further consolidation.
If the price breaks below the 100 EMA at $0.00002108, it could signal bearish pressure in the short term.
Source: TradingView
The Relative Strength Index (RSI) is hovering around 44.95, suggesting BONK is approaching oversold conditions.
A rebound in the RSI above 50 could indicate fresh buying pressure, although the current downtrend suggests that the price could continue to consolidate.
Additionally, the Moving Average Divergence Convergence (MACD) indicator on the 4-hour chart is showing a bearish crossover, reinforcing the possibility of a bearish trend unless the price can regain momentum.
BONK: current market performance
At press time, BONK's price is $0.00002124, after falling 6.31% over the past 24 hours and 15.59% over the past seven days. With a circulating supply of 69 trillion tokens, BONK's market capitalization is $1.47 billion.
Despite the short-term price decline, World of Charts remains optimistic about a breakout, provided key support levels hold.
Recent data from Coinglass reveals an increase in both trading volume and open interest for the memecoin. Volume increased by 5.58% to $91.07 million, while open interest increased by 1.57% to $9.94 million.
These indicators show that traders are positioning themselves to prepare for a possible breakout.
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