Following a price spike to new highs in the past few months, the doggy-themed meme coin Bonk (BONK) has since declined and is now consolidating. A crypto analyst noted that Bonk is undergoing a corrective Wave 3 move down, suggesting that the meme coin could be breaking past a downward trend and preparing for a new All-Time High (ATH).
Bonk Price Set For $0.00006 ATH
The Elliott Wave theory is a technical analysis of patterns that help predict cryptocurrency price movements or the overall trajectory of the market. The Bonk price chart shared by prominent crypto analyst Bluntz is labeled with Elliott Wave theory patterns from waves one to five. This five-wave structure indicates a potential move upwards to new ATHs for Bonk.
Bluntz revealed in an X (formerly Twitter) post that Bonk had retraced 46.09% of its previous highs, marking the completion of corrective Wave C of the Elliott wave theory. The three-wave correction structure in the Bonk price chart suggests a pullback phase, which is expected during market cycles
The analyst has interpreted this price decline as a healthy correction within a bullish trend for Bonk. While the Bonk price is currently trading at $0.000038, its chart indicates a potential resumption of its previous upward momentum to reach new ATHs at $0.00006.
Bluntz has suggested that Bonk’s current price dip could present a rare buying opportunity for investors, implying confidence in the meme coin‘s bullish outlook. By the fifth wave, which could be around 2025, the analyst expects Bonk‘s price to skyrocket, pushing its price towards the projected ATH.
The Relative Strength Index (RSI) indicator at the bottom of the chart also shows a reading near 45, indicating that Bonk could soon enter oversold territory. Thus, the theory of a potential price bounce is supported.
Analyst Predicts Bonk Price Will Erase A Zero
Also, in sharing a Bonk price prediction based on the Elliott Wave theory, crypto analyst Sensei has compared Bonk’s price action to Bitcoin’s historical wave structure. The analyst revealed that Bonk was in an accumulation phase over the past year, where its price showed relative stability.
However, the meme coin experienced a serious move upward after breaking out into the first wave of the Elliott wave cycle. In the second wave, as seen by the price chart, the analyst highlights a pullback in which the price of Bonk consolidates and “weak hands” leave the market.
As expected, Sensei has predicted that Wave 3 could push Bonk to a new ATH, as this wave is often seen as the strongest. During Wave 4, Bonk is projected to experience a minor correction again before surging above $0.0001, eliminating a zero from its current price and marking a new ATH in Wave 5.
Sensei has drawn parallels between Bonk’s wave structure and Bitcoin’s historical wave patterns, highlighting that the wave movements’ similarities may strengthen Bonk’s case for reaching a new ATH.
Featured image from The Daily Dot, chart from TradingView
