Date: Tue, Jan 21, 2025, 03:44 AM GMT
In the cryptocurrency market today, a milestone is coming into the spotlight for memecoins. Asset manager REX Shares has filed for several crypto-related exchange-traded funds (ETFs) with the SEC, including memecoins options for TRUMP, DOGE, and BONK for institutional investors.
Source: @Cointelegraph (X)
Following the news, the Solana-based memecoin Bonk (BONK) has started gaining momentum, with current technical patterns hinting at potential gains in the near future.
Source: Coinmarketcap
Retest Its Broadening Wedge Breakout
Bonk (BONK) recorded a remarkable bullish rally of 235% in November, pushing its price from $0.000018 to a high of $0.000060. However, after this impressive surge, BONK entered a correction phase, forming a Broadening Wedge pattern.
Bonk (BONK) 1D Chart/Coinsprobe (Source: Tradingview)
Recently, on January 17, BONK broke out above the upper trendline of its wedge, reaching a local high of $0.00003976. This breakout signaled renewed bullish momentum. As expected following such moves, the token retraced to retest the breakout trendline at $0.00002832, which acted as a critical support zone.
Currently, BONK is trading at $0.000034. If this support holds firm, there is a strong possibility of a rebound. A successful bounceback could potentially lead to a rally toward its recent high at $0.00003976, representing a 20% gain. If bullish momentum builds beyond this level, the next significant resistance levels are at $0.000048 and $0.000060.
BONK is holding above the 50-day MA as support, with the 100-day MA trending upwards, indicating a strong bullish structure. The MACD shows early signs of a positive crossover, suggesting growing buyer interest and potential for continued upward momentum.
Outlook
With the ETF filling, BONK is likely to remain in the spotlight. A successful retest of its breakout level could act as a springboard for a fresh rally, possibly reclaiming November highs. However, traders should closely monitor key support and resistance levels as well as broader market sentiment.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
