BONK Price Poised for 30% Surge Ahead of Key Resistance

BONK price plummeted 1.65% to $0.000029 on Tuesday despite a general uptick in the broader crypto market. The buying pressure uplifted Bitcoin price above $60000 following the recently released U.S. Producer Price Index (PPI) monthly rate of 0.1%, which came in lower than market expectations. This indicates that inflationary pressures might be easing more than anticipated and could lead to the Federal Reserve considering rate cuts shortly. Will this recovery be sustained?

BONK Price Poised to Retest Major Support

The Bonk price has shown an aggressive correction trend since late July, displaying a V-top reversal in the daily chart. The bearish reversal plunged the asset from $0.0000339 to $0.00001785, according to a 47.2% loss.

However, selling pressure recently eased for this Solana meme coin as the buyer gained suitable support from the channel pattern’s lower trendline (blue). Since February 2024, this chart pattern has led to a steady recovery trend within two parallel trendlines.

By press time, the BONK price was $0.000019, boosting its market cap to $1.372 Billion. While the near-term trend in the crypto market is sideways, this meme cryptocurrency could continue to hover above the ascending trendline to recuperate bullish momentum.

Amid the consolidation, the BONK coin has seen a notable upswing in Open Interest since last week. Data from Coinglass shows that Open Interest climbed from $5.7 million to $6.5 million, an increase of approximately 14%. 

This upswing in OI indicates growing market confidence and potential bullish momentum as traders increase their positions, suggesting that this asset could be gearing up for a significant price movement shortly.

The MACD (blue) and signal (orange) line nearing a bullish crossover could accelerate the bullish momentum for the higher rally.

Thus, a potential rebound could drive the coin price by 30% to challenge a downsloping trendline at $0.000024. 

The overhead trendline drives the current correction trend in the BONK price. In addition, the price trading below the daily Exponential moving average (20, 50, 100, and 200) hints at the path to least resistance of down.

Therefore, a possible breakdown below strengthens the seller’s grip and pushes the altcoin 38% to seek support at $0.000012.