BONK: Retest and Potential PUMP !BONK is a Solana-based meme coin that has been gaining popularity in recent weeks. The price of BONK has been on a tear, rising from $0.00000001 to $0.0000023 in a matter of days.
After reaching a high of $0.0000023, BONK experienced a pullback and retested the 4-hour upper resistance trend line. This retest could be a sign that BONK is ready for another leg up.
The AMD setup:
The Wyckoff Accumulation, Manipulation, and Distribution (AMD) setup is a popular technical analysis model that describes the three phases of a market cycle:
Accumulation: During this phase, large buyers accumulate tokens at low prices, often creating a bullish chart pattern.
Manipulation: In this phase, the price is manipulated to create the illusion of a strong uptrend, attracting retail buyers.
Distribution: In this phase, the large buyers sell their tokens at high prices, causing the price to dump.
The current BONK chart:
The current BONK chart shows that the price has been following the AMD setup.
Accumulation: The price accumulated in a horizontal range for several weeks.
Manipulation: The price broke out of the range and rallied sharply.
Distribution: The price pulled back and retested the upper resistance trend line.
Why this is a good time to buy:
Retest: The retest of the upper resistance trend line provides a good entry opportunity.
Volume: The volume is increasing, which is a sign of strength.
Social media hype: There is a lot of hype surrounding BONK on social media, which could provide additional fuel for the rally.
Conclusion:
BONK has been following the AMD setup and is currently retesting the upper resistance trend line. This could be a good time to buy in anticipation of another leg up. However, investors should always do their own research and exercise caution before investing in any cryptocurrency.
