Solana’s BONK Memecoin: Is It The Right Time to Buy?
NOIDA (CoinChapter.com) — BONK, the Solana-based memecoin, has surged to a new all-time high (ATH) amid heightened market activity and fresh listings. The token rallied over 10% in the past week, driven by bullish sentiment around its addition to Upbit’s KRW market.
BONK’s rise coincides with Solana’s broader ecosystem revival and community-driven initiatives like planned token burns. However, the Solana memecoin’s price charts shed doubt on whether the current trend will hold or lead to a sharp correction as the price approaches critical resistance.
Recent Listing Fuels BONK’s Momentum, but Risks Loom
BONK’s addition to Upbit’s KRW market on November 20, 2024, would likely boost the token’s visibility, particularly in the South Korean market. The listing has initial trading restrictions, including a buy limit for the first five minutes and a minimum sell price limit below 10% of the previous day’s closing price.
Upbit announced the listing of the Solana memecoin BONK
These measures, alongside BONK’s growing accessibility through the Solana network, might help amplify investor interest in the token and keep the Solana memecoin’s rally going.
Listings on major exchanges often catalyze price rallies by increasing liquidity and attracting new buyers. BONK’s latest surge reflects this, as the token tapped into fresh capital inflows. However, its chart analysis suggests caution is warranted.
BONK USD pair might form a bulll trap if it fails to overcome the channel resistance. Source: Tradingview
BONK is trading within an ascending channel on the weekly timeframe, currently nearing its upper resistance. If the token fails to break above this level decisively, it risks triggering a bull trap, leading to a price crash of up to 66%—a move that aligns with the channel’s lower boundary.
While the overall trend remains bullish, the overbought RSI level adds bearish cues against the BONK token. Overbought RSI levels often precede trend reversals, which could instigate traders to book profits.
Traders should monitor for signs of rejection at resistance, which could mark a significant reversal. Until a breakout is confirmed, the memecoin’s price rally may remain precarious.
Buying BONK token now without a confirmed breakout from the ascending channel could result in a bull trap for traders.
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