Bonk (BONK) is showing signs of a potential turnaround following a recent downturn in its price. Analysts are pointing to a bullish setup on BONK’s daily chart, indicating a possible price recovery in the near future.
One key indicator that is catching the attention of investors is the TD sequential indicator, which has flashed a buy signal. This signal suggests that BONK could be gearing up for an upward movement, hinting at a possible trend reversal.
In addition to the technical indicators, BONK’s recent token burn event is also expected to have a positive impact on its price. The announcement of a 2.025 trillion token burn by the official BONK team has created anticipation for a supply squeeze, potentially driving up the value of the meme coin. Token burns have historically led to price appreciation by reducing the circulating supply and increasing demand, and this event could serve as a catalyst for further price gains.
On the chart patterns and price targets front, BONK is showing signs of a morning star pattern, a bullish reversal signal that could pave the way for a recovery in the coming week. The initial price target is set at the S1 pivot level of $0.000028, with a psychological resistance level of $0.000020 posing a challenge for further gains. However, a breakout above this level could trigger increased buying pressure and set the stage for a stronger uptrend.
In terms of market performance, BONK is currently priced at $0.00001756, reflecting a 4.90% increase in the last 24 hours but a 30.21% decrease over the past week. The 24-hour trading volume stands at $144.85 million, with a circulating supply of 77 trillion BONK and a market cap of $1.36 billion.
In the derivatives market, the sentiment is mixed, with trading volume in derivatives slightly dipping while open interest has seen an increase. The Relative Strength Index (RSI) is near 30, indicating that BONK is approaching oversold territory. A potential bounce could follow if the RSI starts to climb. On the other hand, the MACD line remains below the signal line, signaling bearish momentum, but the narrowing gap in the histogram suggests weakening selling pressure.
Overall, the combination of technical indicators, market sentiment, and the upcoming token burn event paints a positive picture for BONK’s potential price trajectory. Investors will be keeping a close eye on developments to see if the meme coin can capitalize on these bullish signals and stage a significant rebound in the near term.