BONK, the runner-up meme token on the Solana network, experienced a 4% decrease within a day to settle at $0.0000448 at the current moment. Trading volumes also saw a 40% decline, following the overall market trend’s downward movement.
Despite this recent dip, BONK has been one of the best-performing digital assets in 2024, showcasing over a 200% increase year-to-date.
As 2024 approaches its end, early indicators suggest BONK might continue its upward trajectory in the upcoming weeks.
BONK’s Formation of a Double-Bottom Structure
An apparent double-bottom pattern is discernible on BONK’s daily chart, typically indicating a switch from a bearish trend to a bullish one.
The meme coin reached its double-bottom pattern’s pinnacle on November 20th, hitting an all-time high of $0.0000623. Following the initial decline to form its first bottom, BONK established a neckline at $0.000046, now challenging resistance at this level once more.
A successful breach of this resistance – the double-bottom pattern’s neckline – could trigger a surge past $0.0000623, paving the way for a new peak.
Conversely, failure to surpass this resistance and dipping below the $0.000040 support level would negate the bullish outlook and initiate a downtrend.
Technical indicators on the price chart strongly suggest an impending uptrend. The Money Flow Index (MFI) is pointing upward, indicating substantial buying pressure and increased capital inflow into BONK.
Furthermore, with an MFI reading of 67, the bullish momentum persists, with BONK yet to reach an overbought state.
The BBTrend indicator confirms the dominance of the bulls, although diminishing histogram bars hint at waning momentum.
Anticipating Consolidation Through Derivative Trading Volumes
Recent data from Coinglass demonstrates a significant drop in derivative trading volumes surrounding BONK over the last fortnight. These volumes peaked in mid-November during BONK’s all-time high rally.
In the same timeframe, BONK’s open interest plummeted from $64 million to $26 million in three weeks, further underscoring limited market involvement.
If there isn’t a resurgence in speculative trading, BONK might find itself in a consolidation phase within a defined trading range.
Could BONK Surpass WIF in 2025?
During November, BONK momentarily surpassed WIF as the principal meme coin on Solana. However, WIF has since reclaimed its top spot, holding a market capitalization of $3.68 billion compared to BONK’s $3.34 billion.
A successful rally above the $0.000046 resistance level and confirmation of the double-bottom pattern could fuel an upward trajectory in 2025, subsequently boosting market cap. Accomplishing a new all-time high could potentially propel BONK to reclaim its throne over WIF once more.