BONK, the second-largest joke token operating on the Solana blockchain, experienced a 4% decline within a 24-hour period, reaching $0.0000448 as of the latest available data. Transaction volumes also saw a 40% decrease, reflecting a general market downturn.
In contrast to this recent dip, BONK has emerged as one of the top-performing digital assets in 2024, having surged by over 200% year-to-date.
As the year 2024 comes to a close, indications suggest that BONK is poised to continue its upward trajectory in the weeks ahead.
Observing BONK’s Double-Bottom Formation
BONK has recently displayed a double-bottom formation on its daily chart, a pattern typically indicating a shift from a bearish trend to a bullish one.
Reaching its peak within this formation on November 20, BONK achieved an all-time high price of $0.0000623. Following a drop to establish its initial bottom, BONK established a neckline at $0.000046 and is currently testing resistance at this level.
A successful breach of this resistance level, acting as the neckline for the double-bottom pattern, could potentially trigger a rally beyond $0.0000623, setting the stage for a new all-time high.
Conversely, failing to surpass this resistance and falling below the support level at $0.000040 would negate the positive outlook and initiate a bearish trend.
Technical indicators on the chart strongly indicate the likelihood of an upward trend. The Money Flow Index (MFI) has been trending upwards, signifying significant buying pressure and increased capital inflows into BONK.
With an MFI reading of 67, indicating ongoing bullish momentum while avoiding overbought conditions, BONK maintains its bullish stance.
The BBTrend indicator confirms the dominance of bulls, although the diminishing histogram bars suggest waning momentum.
Anticipating Consolidation through Derivative Trading Volumes
Derivative trading volumes related to BONK have significantly decreased in the past two weeks, as indicated by Coinglass data. These volumes had peaked in mid-November alongside BONK’s all-time high surge.
Simultaneously, BONK’s open interest declined from $64 million to $26 million over three weeks, indicating reduced market participation.
In the absence of fresh speculative activity, BONK might undergo a period of consolidation within a specified range.
Is BONK Positioning to Surpass WIF in 2025?
With BONK briefly overtaking dogwifhat (WIF) in November to become the primary meme token on Solana, WIF has since reclaimed the top position with a market cap of $3.68 billion compared to BONK’s $3.34 billion.
A successful rally past the $0.000046 resistance level and confirmation of the double-bottom pattern could pave the way for a sustained uptrend in 2025, supporting further market cap growth. A new all-time high for BONK could result in it regaining the lead position over WIF.