Bullish Breakout Imminent for BONK Memecoin: Analyst Highlights Emerging Cup and Handle Pattern – What to Watch
Sjuul | AltCryptoGems, a top analyst, has identified potential bullish signals for the digital asset $BONK. In a tweet, the analyst shared a chart analysis, highlighting key patterns and levels that could suggest a favorable outlook for $BONK. He stated, “$BONK had a nice rally lately, now is consolidating just below a key resistance level. You can see a sort of cup & handle pattern forming here. Pay attention for a possible breakout!”
What you'll learn 👉
Breaking the Bearish Trend: A Technical Turnaround
The chart, presented on a 4-hour candlestick timeframe, reveals a descending trendline connecting the lower highs from left to right. This trendline indicates that the market has been in a downtrend over the period covered. However, a significant development is the break of this descending trendline, which is typically considered a bullish signal, hinting at a potential change in trend from bearish to bullish.
Moreover, one of the notable features highlighted by the analyst is a green-shaded support zone. This area represents a price level where the asset has found a floor, with buyers historically stepping in to provide a potential bounce for the price. Additionally, the chart illustrates a ‘Cup & Handle’ pattern, a bullish continuation pattern that suggests a slow and steady recovery from a previous downtrend.
The ‘Cup’ portion of the pattern is a U-shape or rounding bottom, while the ‘handle’ is a smaller downward drift in price following the cup, indicating a final sell-off before a potential bullish breakout. Sjuul | AltCryptoGems has also annotated a ‘Minimum Price Target,’ which implies the potential upside that may be achieved if the pattern is confirmed.
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Show more +Flag Pattern and Market Continuation
Moreover, after the breakout from the descending trendline, the chart shows a small consolidation in the form of a flag pattern. This continuation pattern suggests that after a strong move up (the pole), the price consolidates sideways or slightly downwards (the flag) before potentially continuing in the direction of the initial move.
Hence, analysts and traders will closely monitor the price action of $BONK to see if the bullish patterns identified by Sjuul | AltCryptoGems play out, potentially leading to a continuation of the upward move.
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