Solana-Based Meme Coin BONK Jumps 10% – Can It Sustain the Rally?

• Solana meme coin BONK jumps 10.65% in 24 hours, ranking among the top gainers.
• A double bottom pattern on the 4-hour chart suggests a trend reversal if BONK breaks above $0.00001240.

The global crypto market is attempting to recover as Bitcoin (BTC) climbs back to the $85K zone. Yet, the recent recovery efforts have fallen short, with major cryptocurrencies continuing to extend their losses. The meme coin sector has taken a big hit with many tokens slipping deeper into losses. Despite this, the Solana-based meme coin BONK has posted a gain of over 10.65% in the past 24 hours, topping the gainers’ list.

Now, BONK holds the third spot among the top gainers which setting itself up for a bullish move for the day. The memecoin broke past a key resistance level at $0.00001206, reaching an intraday high of $0.00001273 from a low of $0.00001151. It has since retraced slightly and is now trading at around $0.00001213. Additionally BONK’s daily trading volume has surged by over 128%, hitting $159.13 million.

BONK Tests Key Resistance with Bullish Reversal Signals

In the one day chart, BONK tested a key resistance level at $0.00001273. Looking at the 4-hour BONK/USDT chart, the meme coin appears to be forming a Double Bottom (W Pattern), a possible bullish reversal signal. The price has tested a support level twice around $0.00001100, creating a “W” shape, with a neckline resistance near $0.00001240. 

A breakout above this level could confirm an upward trend that signaling increased buying interest. On the other hand if BONK forms a higher low it may develop into an Inverse Head and Shoulders pattern that hinting at a possible bullish reversal. As of now, the Double Bottom pattern is the more well known formation that indicating a possible trend reversal if resistance is breached.

Some technical indicators also support a breakout view. The MACD line is crossing above the signal line that hinting at positive momentum. Meanwhile, the RSI at 52.97, moving away from oversold levels that suggesting growing buying interest. Zooming in, the Chaikin Money Flow (CMF) at -0.05 shows mild selling pressure indicating that buyers need more strength to sustain the rally. A breakout above $0.00001240 should be accompanied by increasing volume for confirmation. Weak volume may indicate a false breakout.

If BONK breaks and holds above the $0.00001240 and $0.00001273 zones with strong volume, it could confirm a bullish reversal, possibly pushing the price toward the next resistance stop at $0.00001350. But failure to hold this level could result in a pullback to the $0.00001100 support zone.

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