Solana-Based Memecoin Bonk (BONK) Hints at a Potential Reversal, Can It Reclaim Its Past Glory?

The cryptocurrency market in the past 48 hours has been dominated by the meteoric rise of Donald Trump's $TRUMP memecoin, which has drawn liquidity from other top memecoins.

The cryptocurrency market has seen a significant shift in the past 48 hours, with the memecoin sector buzzing thanks to Donald Trump’s $TRUMP memecoin. However, a closer look reveals that the market is painting a different picture.

As reported earlier, Trump’s memecoin, $TRUMP, has experienced a meteoric rise, surging over 1,000% and briefly entering the top 100 cryptocurrencies by market capitalization. This بلا بلا بلا has sucked liquidity away from other memecoins, leading to a collective downturn.

Among the impacted memecoins is Solana’s Bonk (BONK), which is trading in the red today. However, a glance at a 12-hour timeframe Bonk technical chart reveals a potential narrative.

Prominent crypto analyst @Johncy highlighted earlier this week that a 12-hour timeframe analysis of Bonk (BONK) reveals a breakout from a broadening wedge pattern. The token is currently retesting the resistance level it just broke out of, which might serve as a pivot point for the token’s trajectory.

BONK 12H Chart/Source: @JohncyCrypto (X)

The 50-day and 100-day moving averages (MA) are crucial indicators here. A successful retest and breakout above the MA 100 could pave the way for an upside move. Notably, BONK is showing signs of stability as it consolidates in the upper range of its key resistance zone.

A glance at the 12-hour timeframe Bonk chart reveals a potential narrative. The token is currently retesting a crucial resistance level after breaking out of a broadening wedge pattern. The 50-day and 100-day moving averages (MA) are also key indicators in this scenario. If Bonk manages to retest the resistance level successfully and break out above the MA 100, it could signal a potential bounceback from its recent downtrend.

However, it's crucial to note that this analysis is based on technical indicators and does not constitute financial advice. Always conduct your own research before making any investment decisions.

This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.