The post Why BONK’s consolidation could end with THIS double bullish pattern appeared on BitcoinEthereumNews.com.

Currently, BONK trades within a double bullish pattern, indicating accumulation and the potential to achieve a higher price level. However, on-chain sentiment remains mixed. While some metrics highlight a bearish presence, others suggest increased liquidity, leaving the market divided. Over the past month, Bonk [BONK] has struggled, dipping by 25.29% and failing to deliver gains for investors. Despite this, recent price action shows a glimmer of recovery, with the asset gaining 0.16% in the last 24 hours. AMBCrypto has identified strong bullish signals supporting BONK’s recent minor uptick. However, the sustainability of BONK’s rally remains uncertain due to misaligned trader sentiment, which poses a potential obstacle. A double bullish pattern in the accumulation zone At press time, BONK was trading within two bullish patterns: a larger descending channel and a consolidation phase within the channel, showing ongoing accumulation. The descending channel typically indicates lower lows as buyers bid at decreasing prices before the market rallies. Within this structure, the consolidation phase, marked by a rectangular box, reflects price distribution between defined support and resistance levels. A breakout from this consolidation phase and a breach of the descending channel’s resistance line could potentially lead BONK to a significant rally, reaching $0.00005666—a 78.65% gain from its current level. Source: TradingView Technical indicators support this bullish outlook. The Relative Strength Index (RSI), a measure of price momentum, has bounced perfectly off the neutral line at 50 and stood at 53.89, suggesting upward momentum. When the RSI stays above 50 and trends higher, as it does for BONK, the likelihood of continued price gains increases. Source: TradingView The Aroon indicator further confirms bullish momentum. The Aroon-Up (orange) is at 64.29%, outpacing the Aroon-Down (blue) at 21.43%. This indicates strong buying activity and suggests that BONK remains in an accumulation phase. The Aroon indicator tracks…

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Filed under: News - @ January 4, 2025 12:17 am