Following a price surge to new highs Over the past few months, the dog-themed Bonk (BONK) coin has since denied and is in the process of consolidating. A cryptocurrency analyst noted that Bonk is undergoing a third wave corrective decline, suggesting that the meme coin could break out of a downtrend and prepare for a new absolute record (ATH).
Bonk Price Set at $0.00006 ATH
THE Elliott wave theory is a technical analysis of patterns that help predict cryptocurrency price movements or overall market trajectory. 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 towards new ATHs for Bonk.
Bluntz revealed in an X (formerly Twitter) job that Bonk had retraced 46.09% of his previous highs, marking the completion of corrective wave C of the Elliott Wave Theory. The three-wave correction structure in Bonk’s price chart suggests a pullback phase, expected during market cycles.
The analyst interpreted this drop in prices as a healthy correction in an uptrend for Bonk. While Bonk price is currently trading at $0.000038, its chart indicates a potential resumption of its previous bullish momentum to reach new ATHs at $0.00006.
Bluntz suggested that Bonk’s current price drop could present a rare buying opportunity for investors, implying confidence in the bullish prospects of the meme coin. By the fifth wave, which could occur around 2025, the analyst expects Bonk price will skyrocketpushing its price towards the projected ATH.
THE Relative Strength Index (RSI) The indicator at the bottom of the chart also shows a reading near 45, indicating that Bonk may soon enter oversold territory. Thus, the theory of a potential price rebound is supported.
Analyst Predicts Bonk Price to Clear a Zero
Also, by sharing a Bonk Price Prediction based on the Elliott Wave theory, crypto analyst Sensei has compared Bonk’s price action compared to Bitcoin’s historical wave structure. The analyst revealed that Bonk was in an accumulation phase over the past year, where his the price showed relative stability.
However, the meme coin saw a serious upward move after breaking out in the first wave of the Elliott Wave cycle. In the second wave, as shown in the price chart, the analyst highlights a pullback during which the price of Bonk consolidates and the “weak hands” leave the market.
As expected, Sensei predicted that wave 3 could push Bonk to a new ATHbecause this wave is often considered the strongest. During wave 4, Bonk is expected to experience a minor correction again before surging above $0.0001, knocking a zero off its current price and marking a new ATH in wave 5.
Sensei drew parallels between Bonk’s wave structure and Historical Bitcoin Wave Patternspointing out that the similarities in wave movements could strengthen Bonk’s arguments for reaching a new ATH.
Featured image from The Daily Dot, chart from TradingView