Convergence

Solana

Bonk

Divergence

Unlike other cryptocurrencies, the <a href="https://coingape.com/top-solana-memecoins/" rel="noopener noreferrer nofollow">Solana meme coin</a>, Bonk price is up on Friday, defying widespread headwinds. The pump comes amid a Bitcoin price crash below $55,000 triggered by selling pressure emanating from key events such as the defunct Mt. Gox exchange starting payments to its creditors and the <a href="https://coingape.com/german-govt-offloads-another-547-bitcoins-rejects-lawmakers-suggestion/" rel="noopener noreferrer nofollow">German</a> government’s BTC selling spree.
Although Bonk and other meme coins were not spared by the correction that has suppressed prices since the end of May, it remains unfazed by the current pressure on the sell side.
<h2 class="p1" id="here-s-why-bonk-price-is-surging">Here’s Why Bonk Price Is Surging</h2>
From a technical standpoint, BONK sits on top of a solid support area provided by a long-term ascending trend line and the 200-day Exponential Moving Average (EMA) in purple.
Traders also jumped on the opportunity to buy BONK at the $0.00002 support area and are betting on the price rebounding to reach $0.000025 by the weekend and $0.00004 in the coming week.
<figure id="attachment_206144" aria-describedby="caption-attachment-206144" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-206144" src="https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_17-52-25.png" alt="Bonk price chart | Tradingview" width="2694" height="1444" srcset="https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_17-52-25.png 2694w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_17-52-25-300x161.png 300w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_17-52-25-1224x656.png 1224w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_17-52-25-768x412.png 768w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_17-52-25-1536x823.png 1536w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_17-52-25-2048x1098.png 2048w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_17-52-25-150x80.png 150w" sizes="(max-width: 2694px) 100vw, 2694px">
 <figcaption id="caption-attachment-206144" class="wp-caption-text">
 Bonk price chart | Tradingview
 </figcaption>
</figure>
A vivid Relative Strength Index (RSI) bearish divergence stresses the importance of understanding the technical outlook of assets. Since BONK set out on the pullback from March peak at $0.000045, the RSI formed a negative divergence with the price.
Investors who may have been following this indicator could have sold near the peak and waited to buy when the RSI is near or in the oversold region below 30.
Currently, the RSI holds in the neutral region and above 45. The 5% rebound can be attributed to to the recovery from near oversold conditions. A break above the descending RSI trend line could spur growth in <a href="https://coingape.com/price/bonk/#:~:text=Live%20Price%20of%20Bonk%20(BONK,market%20cap%20stands%20at%20$1,320,319,386." rel="noopener noreferrer nofollow">Bonk price</a> as traders rush to buy the meme coin before breaking out.
Nevertheless, the death cross pattern established recently when the 20-day EMA flipped under the 50-day EMA calls for caution among traders and investors.
It may not be wise to go all-in on Bonk at the moment. Traders should DCA responsibly until the token recovers above the 20-day EMA and the 50-day EMA.
<h2 class="p1" id="what-s-next-as-bonk-rebounds-to-0-000022">What’s Next As BONK Rebounds To $0.000022</h2>
After bulls viciously defended $0.00002 support, Bonk bounced above $0.000022. However, this uptick could be in jeopardy due to the resistance highlighted on the four-hour chart by the 20-day EMA in blue.
<figure id="attachment_206145" aria-describedby="caption-attachment-206145" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-206145" src="https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_18-11-00.png" alt="Bonk price chart | Tradingview" width="2694" height="1444" srcset="https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_18-11-00.png 2694w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_18-11-00-300x161.png 300w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_18-11-00-1224x656.png 1224w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_18-11-00-768x412.png 768w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_18-11-00-1536x823.png 1536w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_18-11-00-2048x1098.png 2048w, https://coingape.com/wp-content/uploads/2024/07/BONKUSD_2024-07-05_18-11-00-150x80.png 150w" sizes="(max-width: 2694px) 100vw, 2694px">
 <figcaption id="caption-attachment-206145" class="wp-caption-text">
 Bonk price chart | Tradingview
 </figcaption>
</figure>
Conversely, an upcoming buy signal from the Moving Average Convergence Divergence (MACD) indicator could validate the bullish thesis. Traders can watch out for this call likely to materialize as the blue MACD line crosses above the red signal line. The first target for daily traders would be $0.000025 but long-term investors might anticipate a larger breakout toward $0.00004 in July.
The post <a href="https://coingape.com/markets/why-is-bonk-price-surging-today-key-factors-behind-the-5-pump/" rel="noopener noreferrer nofollow">Why Is BONK Price Surging Today? Key Factors Behind the 5% Pump</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Why Is BONK Price Surging Today? Key Factors Behind the 5% Pump

Table of Contents

Coingape News Media

Autres articles publiés le 5 juil. 2024

Bitcoin Breaks Below $55K Amidst Mt. Gox BTC Transfers

BitMEX Debuts New Meme Coin Index – Catalyst for a Crypto Comeback?

The REAL Bull Market May Start After Current Correction - How Far Altcon Prices Will Go?

Bitnance (BTN) Token Presale Offers Binance Chain’s Bitcoin For 36-Cents

Bitcoin Holds Steady at $58,400

Will Solana hit $160 in July? Some interesting patterns emerge

Join our free newsletter for daily crypto updates!