BONK Surges To New ATH As Solana Memecoin Market Revives, But Risks Loom

BONK, the Solana-based memecoin, has surged to a new all-time high (ATH) amid heightened market activity and fresh listings.

Solana-based memecoin BONK has hit a new all-time high (ATH) amid heightened market activity and fresh listings. The token surged over 10% in the past week, largely driven by bullish sentiment around its addition to Upbeat's KRW market.

As reported by CoinChapter earlier this month, BONK is set to be listed on Upbit's KRW market on November 20, 2024. The listing will come with some initial trading restrictions.

For instance, there will be a buy limit for the first five minutes of trading, and a minimum sell price limit set below 10% of the previous day's closing price.

These measures, coupled with BONK's increasing accessibility throughout the Solana network, may amplify investor interest in the token and sustain the Solana memecoin's rally.

Major exchange listings often serve as catalysts for price rallies by increasing liquidity and introducing new buyers to a token. BONK's latest price surge is a testament to this, as the token tapped into fresh capital inflows.

However, a glance at its chart analysis reveals that the token is trading within an ascending channel on the weekly timeframe, currently nearing its upper resistance.

Should the token fail to break decisively above this level, it risks setting up a bull trap, which could lead to a price crash of up to 66% — a move that aligns with the channel's lower boundary.

Moreover, despite the overall bullish trend, the overbought RSI level presents bearish cues against the BONK token.

Overbought RSI levels often precede trend reversals, which may prompt traders to book profits.

Traders should be on the lookout for signs of rejection at resistance, which could mark a significant reversal. Until a breakout is confirmed, the memecoin's price rally may remain tenuous.

Buying the BONK token now without a confirmed breakout from the ascending channel could lead to a bull trap for traders.