The meme coin market is back in the spotlight, and BONK is no exception. The dog-themed token has seen a price increase of more than 40% in the past month, reflecting a broader trend among its rival meme coins.
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This recent rally comes amid positive sentiment around the crypto market, fueled in part by the long-awaited approval of a Ethereum ETF. Analysts are cautiously optimistic about BONK’s future, with some predicting a potential return to all-time highs.
Analyst optimistic about new ATH for BONK
Well-known crypto analyst CryptoJack has been closely following BONK’s price movements. In a recent analysis, he highlighted that the coin is following a bullish pattern he outlined earlier.
The price of $BONK does exactly what I said in my analysis last week.
It was rejected by the resistance and now needs to bounce out of the orange support area to remain bullish.
If we can stay above this area, I expect new ATHs very soon #BONK! pic.twitter.com/j3Abd7J5YA
— CryptoJack (@cryptojack) May 30, 2024
However, CryptoJack emphasizes the importance of a crucial support level – visualized as an ‘orange zone’ on charts. If THUMP can maintain its position above this zone, the analyst predicts a potential breakout and a rise to new all-time highs (ATHs).
BONK’s all-time high of $0.00004547, reached in March 2024, is currently about 25% above the current price. While this historic peak suggests room for growth, some experts remain cautious. Technical analysis, the method CryptoJack uses, relies on past price movements to predict future trends, but it is not an infallible science.
Meme Coin Frenzy: Thumps and Wails
The meme coin market has a reputation for being driven more by social media hype and trends than by underlying fundamentals. This can lead to explosive price increases, but also to equally dramatic crashes. Remember “Dogefather” Elon Musk’s nonchalant tweets that sent Dogecoin prices into a frenzy, only to see them plummet just as quickly? BONK is not immune to such influences.
BONK price prediction
Meanwhile, based on the current price forecast, Bonk is expected to increase by as much as 226%, reaching $0.000112 on July 1, 2024. This substantial increase indicates a very bullish long-term outlook, despite the current bearish sentiment indicated by technical indicators.
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The Fear & Greed Index, currently at 72, indicates a high level of greed in the market. This index measures market sentiment and a score of 72 indicates that investors are exhibiting strong buying behavior, possibly driven by the expectation of future profits.
However, such a high level of greed can often lead to overbought conditions, where the asset’s price can be inflated above its intrinsic value, increasing the risk of a sharp correction.
Featured image from Pngtree, chart from TradingView