Solana's Answer To Dogecoin Is Correcting But Analyst Says It Could Be Confirmation That Bonk Has More Upside (CORRECTED)

Editor's note: This story has been updated to reflect the correct spelling of Bonk coin.

Dog-themed memecoin Bonk BONK/USD has corrected since hitting its peak last week, but an analyst feels such retests are great confirmation signals for further upside.

What Happened: On Sunday, prominent cryptocurrency trader Rekt Capital took to X, formerly Twitter, to express his views on the trajectory of the Solana SOL/USD-based token. He suggested that the cryptocurrency could see a bit more downside in June, which could potentially lead to a macro retest of its previous breakout range.

This viewpoint comes in the wake of BONK’s continued slide ever since it recorded its all-time high of $0.000043 last week.

$BONK

A little bit of extra downside in the new month of June and suddenly a Macro Retest of the old #BONK breakout range seems a little bit more possible#BTC #Crypto #Bitcoin https://t.co/RSmDQPTnxZ pic.twitter.com/1tre8W4y7d

— Rekt Capital (@rektcapital) June 2, 2024

See Also: Massive Shiba Inu Burn Ignites Hope For Price Recovery Despite Market Downturn

A few days ago, Rekt Capital noticed a pattern in BONK’s trajectory in which it retests old range highs as support after breaking out.

“Post-breakout retests don’t always happen, especially when the buy-side pressure is strong, but such retests are great confirmation signals for further upside,” the analyst had said.

Why It Matters: Despite the pullback, BONK’s recent performance has been noteworthy. The coin was one of the biggest market gainers over the last month, and the third-best performing memecoin in the period, with gains of more than 23%.

In doing so, BONK outperformed senior dog-themed cryptocurrencies like Dogecoin DOGE/USD and Shiba Inu SHIB/USD

The number of traders taking bullish long positions for BONK in the derivatives market started to increase in the last 24 hours, according to Coinglass, reflecting confidence in the coin’s upsides.

Price Action: At the time of writing, BONK was trading at $0.00003232, following a 3.5% drop in the last 24 hours, according to data from Benzinga Pro.

Image via Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.