- Solana meme coin BONK jumps 10.65% in 24 hours, ranking among the top gainers.
- A double bottom pattern on the 4-hour chart suggests a trend reversal if BONK breaks above $0.00001240.
The global crypto market is attempting to recover as Bitcoin (BTC) climbs back to the $85K zone. Yet, the recent recovery efforts have fallen short, with major cryptocurrencies continuing to extend their losses. The meme coin sector has been hit hard, with many tokens dipping further into the red. Despite this, the Solana-based meme coin BONK has posted a gain of over 10.65% in the past 24 hours, topping the gainers’ list.
BONK currently holds the third spot among the top gainers, setting itself up for a bullish move for the day. The memecoin broke past a key resistance level at $0.00001206, reaching an intraday high of $0.00001273 from a low of $0.00001151. It has since retraced slightly and is now trading at around $0.00001213. Additionally BONK’s daily trading volume has surged by over 128%, hitting $159.13 million.
BONK Tests Key Resistance with Bullish Reversal Signals
In the one day chart, BONK tested a key resistance level at $0.00001273. Looking at the 4-hour BONK/USDT chart, the meme coin appears to be forming a Double Bottom (W Pattern), a possible bullish reversal signal. The price has tested a support level twice around $0.00001100, creating a “W” shape, with a neckline resistance near $0.00001240.
A breakout above this level could confirm an upward trend, signaling potential buying momentum. Alternatively, if the price forms a higher low, it could develop into an Inverse Head & Shoulders pattern. However, as of now, the Double Bottom pattern is the more prominent formation, indicating a possible trend reversal if resistance is breached.
Some technical indicators also support a potential breakout. The MACD line is crossing above the signal line, hinting at bullish momentum. Meanwhile, the RSI has risen to 52.97, moving away from oversold levels, suggesting growing buying interest. However, the Chaikin Money Flow (CMF) at -0.05 shows mild selling pressure, indicating that buyers need more strength to sustain the rally. A breakout above $0.00001240 should be accompanied by increasing volume for confirmation. Weak volume may indicate a false breakout.
If BONK successfully breaks and holds above the $0.00001240 – $0.00001273 range with strong volume, it could confirm a bullish reversal, potentially pushing the price toward the next resistance at $0.00001350. However, failure to hold this level could result in a pullback to the $0.00001100 support.
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