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- 1 Last week, both the 7-day and 24-hour active address counts have seen an increase, signaling a positive shift in sentiment.
- 2 Investors in Bonk are preparing for a potential rebound to its April 25 peak value of $0.00002966.
Over the last few sessions, the cryptocurrency market has seen a significant recovery, with Bitcoin climbing from a low close to $56,000 to its current price near $63,700. This uptrend has positively influenced different sectors, particularly the meme coin niche, with BONK experiencing a 9% increase.
With the market mood on the upswing, investors are keeping a keen eye on the price trends and forecasts for these widely-followed meme digital currencies. Let’s explore the insights and future outlook provided by cryptocurrency analysts and specialists.
BONK: Weighted Sentiments Points To A Recovery?
The positive shift in the broader cryptocurrency market’s mood could bode well for BONK, as the increase in active addresses suggests that major players were positioning themselves in anticipation of the market’s upturn, hinting at a possible uptick for the cryptocurrency in the future.
Additionally, the charts have shown an uptick in weighted sentiment, lending more credibility to the prospect of a forthcoming recovery.
Typically, the count of active addresses is a measure of the distinct users engaging in transactions over a specified timeframe. A greater volume of transactions denotes enhanced liquidity, making it more attractive to investors.
Is Bonk Poised for Continued Upward Momentum?
Since April 20, Bonk was in an uptrend, bouncing back from the 200-day Exponential Moving Average (EMA). Should this upward trend persist, Bonk might approach its April 25 high of $$0.00002946$$, marking 18% increase from its CMP. Currently, Bonk is trading at $$0.0000250$$.
However, Bonk may encounter resistance near its May 5 peak of $$0.00002918$$. On the downside, support might be found at $$0.0000210$$, aligning with the 50-day EMA and a recent low point.
The Relative Strength Index (RSI) was at 54.35, and the Simple Moving Average (SMA) was placed close to 57.2, both indicating a neutral position rather than an overbought condition. Also, the price was above the key EMAs of 50 and 200 days suggesting a positive outlook.
Now, if Bonk price closes below $$0.0000210$$ and the 50-day EMA on the daily chart, it could negate the optimistic outlook. In such a case, Bonk might fall back to $$0.00001766$$, reaching the lower demand zone.
Conclusion
The cryptocurrency market is recovering, with Bitcoin rising towards $63,700.The memecoin BONK has also recovered nearly 9% on a broader market recovery. Also, Increased active addresses and positive weighted sentiment indicate a market upturn, potentially benefiting BONK.
Now, If the recovery continues, BONK could add 18% gain to its April 25 high of $0.00002946. Resistance may occur near $0.00002918, with support at $0.0000210. The RSI and SMA suggest neutrality. On the flip side, A close below $0.0000210 could reverse gains, possibly leading to a drop to $0.00001766.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
