Is BONK Price Ready to Escape 3-Month Correction?

BONK price surged 3% to $0.000018 on Wednesday’s trading session as Bitcoin price jumped above $60000 psychological level. This Solona-based meme coin has risen for three consecutive days, indicating a renewed buying momentum and potential bottom formation. Will buyers drive this recovery further, or are sellers waiting for a counterattack?

BONK Price Consolidates Above Major Support

Over the past two weeks, the BONK price witnessed a sideways action resonating between the 200-day Exponential moving average and the support trendline of a rising channel pattern. This chart setup consists of two trendlines acting as dynamic support and resistance to lead a steady recovery trend.

A consolidation trend above the bottom support (blue) is crucial for meme coin buyers as the last retest to this support bolstered a 267% rally to $0.000045. The momentum indicator Relative strength index forming a higher lower formation indicates the rising buying pressure at the channel pattern.

Supporting the bullish thesis, the BONK futures open interest witnessed a fresh upsurge to $7.65 Million, according to Coinglass data. This increase in open interest indicates that more investors are entering the market and opening new positions, often reflecting growing confidence in the asset.

With sustained buying, the BONK price could rally 17% to challenge the combined resistance of $0.0000219 and a downsloping trendline. This overhead resistance (Red) has been intact since May 2024 and drives the current correction trend with fresh lower high formation.

A potential breakout from this resistance will signal the end of a three-month correction and offer buyers suitable footholds to drive sustained recovery. The post-breakout rally could drive the asset to over 50% to target $0.0000338, followed by $0.000045.

On the contrary note, the daily EMAs (50, 100, and 200) accumulated at the $0.000022 level create a solid resistance against potential recovery. If the overhead support at the above-mentioned level persists, the BONK could rechallenge the lower trendline and delay the breakout thesis.