The current situation in the cryptocurrency market is marked by a correction following Ethereum's sharp decline to around $3,940. This has affected many altcoins, including Bonk (BONK).
Market-wide Decline
The crypto market has experienced a correction as Ethereum (ETH) slipped back to about $3,660, representing a 5% daily decline. This change sparked a wave of sell-offs among major altcoins and memecoins.
Cup and Handle Formation on BONK
On BONK's daily chart, shared by renowned crypto analyst JohncyCrypto, a classic Cup and Handle formation has emerged. This bullish continuation pattern formed from February to May, followed by the 'handle' in June–July, leading to a breakout above the neckline resistance around $0.00002500 in mid-July.
Outlook for Bonk (BONK)
Currently, BONK is revisiting the neckline area around $0.000025. If this support holds and buyers re-enter, Bonk could target reclaiming the recent high of $0.00004061, with a further goal of reaching the upper resistance zone at $0.00005200, signifying a 94% potential gain. However, bulls must defend the $0.00002400–$0.00002600 neckline area to maintain the breakout structure.
The ongoing correction in the crypto market presents a tense situation for investors. Bonk (BONK) shows a potential bullish formation, but subsequent movements depend on the ability to uphold critical support levels.
