• BONK has formed a double-bottom pattern on a higher timeframe chart suggesting a bullish trend reversal.
• However, a lack of high trading volumes in the derivatives market could lead to price consolidation. 

Bonk [BONK], the second-largest meme coin on the Solana [SOL] blockchain, dropped by 4% in 24 hours to trade at $0.0000448 at press time. Trading volumes were also down by 40%, per CoinMarketCap, mirroring the downtrend across the broader market. 

Despite this recent drop, BONK has been among the top-performing tokens in 2024. In fact, it has gained by more than 200% year-to-date. 

With 2024 drawing to a close, BONK is already showing signs of recording more gains in the coming weeks. 

BONK forms a double-bottom pattern

BONK has formed a double-bottom pattern on its one-day chart, which usually signals a reversal from a downtrend to an uptrend. 

The meme coin hit the peak of this double-bottom pattern on November 20 when the price soared to an all-time high of $0.0000623. After dropping to form its first bottom, BONK formed a neckline at $0.000046, and it is once again testing resistance at this level. 

If BONK flips this resistance level, which is also the neckline for the double bottom pattern, it could ignite a rally past $0.0000623, paving the way for a new ATH.

On the other hand, if it fails to breach this resistance and drops below the support level at $0.000040, it will invalidate the bullish thesis and ignite a downtrend. 

Technical indicators

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Author: Muthoni Mary