Sentiment in the cryptocurrency market is turning bullish following Bitcoin’s recent uptrend, driving overall momentum in the market.
Over the past 24 hours, memecoins have come into focus, hinting at a potential memecoin season.
At the forefront of the list of gainers among the top 100 cryptocurrencies by market capitalization is Bonk [BONK], showing a 3.8% increase, followed by Dogecoin [DOGE] with a 3.2% rise.
Ripple [XRP] also experienced a 3.2% upturn, with dogwifhat [WIF] and Popcat [POPCAT] rounding up the top five performers.
Not only did the memecoin lead in percentage gains, but it also surpassed Sei [SEI], a Layer 1 blockchain, in terms of market cap, highlighting Bonk’s growing potential in the long run.
BONK in Phase of Consolidation within Symmetrical Triangle Formation
Currently, Bonk’s price movement is showing robust bullish momentum, prompting the question of whether BONK/USDT will break out and witness a surge as we head towards the final quarter of the year.
This time frame historically tends to be bullish for the crypto market.
The pair is trading in a large symmetrical triangle, with the price edging closer to the pattern’s resistance level.
Since the beginning of the year, the symmetrical triangle, which has been taking shape, indicates that traders and investors have accumulated a substantial amount of Bonk, hinting at a probable breakout.
Previously, the pair formed a triple bottom around the $0.000016 range, a pattern commonly indicating a reversal.
The confirmation of this triple bottom was marked by a breakout above the neckline, but a crucial breakout above the upper resistance level is essential for the bullish scenario to unfold.
Several indicators lend support to the notion that Bonk might break out and witness a rally. Notably, the MACD has turned entirely bullish, with the histogram bars signaling an increase in buying momentum.
These factors further reinforce the expectation of a potential breakout above the resistance level, leading to a significant surge.
If the breakout materializes, traders might anticipate a potential gain of over 70% from the breakout point to BONK’s all-time high.
Increasing Interest in the Futures Market
An analysis of Bonk’s Futures Open Interest across various exchanges reveals a growing interest in the token as its price action gains strength.
Since the start of August, Bonk’s Open Interest has reached new peaks this week, marking the highest values in the past two months.
This rising Open Interest further corroborates the possibility of a substantial breakout for Bonk, as more traders and institutions exhibit interest in its price movement.