The cryptocurrency market has recently shown signs of bullish sentiment, as evidenced by the performance of assets like Ethereum and Bonk.
Ethereum and Bonk Growth
In the past week, Ethereum (ETH) has risen over 4%, trading around $2,520. This positive trend has also spilled over into altcoins, including Bonk (BONK), which has surged by 33%.
Formation of 'Cup and Handle' Pattern
On the daily chart, Bonk is forming a classic *Cup and Handle* pattern, which often precedes a breakout. The 'cup' portion formed between February and May, followed by a slight 'handle' where the price consolidated from late May to early July.
Outlook for Bonk
If Bonk can push above the handle resistance at the 200-day moving average (currently around $0.00001881), this could trigger the next leg higher. The immediate goal would then be the neckline at $0.00002580, implying a 44% increase from current levels.
Despite the positive signals, traders should remain cautious, as failure to break above current resistance could result in sideways movement.
