The crypto market recovery resumes on Friday during the U.S. trading hours as Bitcoin jumps 4% to hit a high of $66475. Similar momentum is observed in the altcoin market, with BONK emerging as the highest gainer with a 16% price jump since yesterday. The mid-week uncertainty allowed market buyers to regroup, and renew bullish momentum to set the stage for fresh breakouts.
BONK Price Caught in Rising Wedge, Aims for 48% Rally
Amid the recent market recovery, the BONK price correction managed to form a stable bottom at $0.000018 support. The bullish reversal has surged the asset 76% to trade at $0.00003183, while the market jumped to $2.19 Billion.
Acquired a psychological level in price or market cap has shown a positive impact on market sentiment. The rising price challenging the upper boundary of Bollinger Band indicator accentuates the buyers are aggressive and ready to buy this asset at a premium.
However, a look at the daily time frame chart shows that the current recovery is still enclosed within a rising wedge formation. The two trendlines of this chart pattern offer BONK traders dynamic resistance and support preventing the asset from a major move price.
Today, the BONK price is up 16.8% and shows high buying conviction from traders with a 76% jump in trading volume. An uptick in the ADX indicator to 16% suggests that buyer momentum is beginning to increase.
With sustained buying, the Solana-based meme coin Bonk could rise 48% to challenge the pattern’s overhead trendline at $0.000046. This potential retest will be a pivotal moment for BONK to impact near-term trends.
If supply pressure at this resistance persists, the BONK price could enter another bear cycle within the wedge and prolong the consolidation.
On a contrary note, a potential breakout from the resistance trendline will provide buyers with suitable support to prolong future rallies. The post-breakout rally may push the asset to $0.000051, followed by $0.000057.
Key Takeaway
A majority of major cryptocurrencies witnessed a renewed recovery sentiment as Bitcoin surpassed $66000 on Friday. However, the meme cryptocurrency sector showcased a higher momentum due to its volatile nature. The BONK price leverages the recent change in market dynamics to continue the formation of the wedge pattern and aim for a 48% upswing.
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Frequently Asked Questions
A psychological level refers to a price level or market cap in trading that is significant due to common human behavior and psychology. These levels often end in multiple zeros, such as $0.000050, $1.00, or $100.00.
The Average Directional Index (ADX) is a technical analysis indicator used to quantify trend strength.
Dynamic resistance and support are levels on a price chart that adjust over time based on recent price movements
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