- Bonk token made a strong bullish breakout as cryptocurrencies rallied.
- This rally happened as Bitcoin made a strong bullish breakout to $47,000.
- The crypto fear and greed index has moved to the greed zone of 74.
Bonk price surged in the overnight session as the crypto fear and greed index and Bitcoin surged. The token, which is the biggest meme coin in Solana’s ecosystem, jumped to a high of $0.00001240, its highest point since January 3rd. Other Solana tokens like Solend, Somoyedcoin, and Raydium also jumped.
Crypto fear and greed index rises
The Bonk token resumed its uptrend as investors embraced a risk on sentiment in the market. This view was seen by the performance of the fear and greed index, one of the most popular gauges in the financial market. It jumped to a high of 74, meaning that it is in the greed zone.
The fear and greed index rally coincided with the general surge of other cryptocurrencies. Bitcoin retested the resistance at $47,000 for the first time since January 2022 while the combined market cap of all cryptocurrencies soared to over $1.72 trillion.
This performance is primarily because of the rising hope that the SEC will approve spot Bitcoin ETFs this week. Some Twitter users have hinted that the decision will come as soon as Wednesday this week.
Companies like Blackrock, Invesco, Franklin Templeton, and Ark Invest have already submitted their final revisions of their prospectus. Also, the SEC has been working with companies like Nasdaq, Goldman Sachs, and JPMorgan on these products.
Bonk price has risen as part of the general crypto rally in anticipation of the ETF approval. In most cases, cryptocurrencies tend to have a close correlation with each other. Recently, Bonk token crashed by over 40% as Bitcoin remained below $43,000.
Bonk is also rising as investors buy the dip since it has been in a strong downward trend. Data by CoinGecko shows that its volume in exchanges has jumped sharply during this recovery.
Bonk price forecast
The 4H chart shows that the Bonk token price has been in a strong downtrend after peaking at $0.000035 on December 15th last year. Along the way, the token formed a falling wedge pattern, which is one of the most bullish signs in the market. It has now moved slightly above the upper side of this pattern and the 50-period moving average.
Meanwhile, the Relative Strength Index (RSI) and the Stochastic Oscillator have pointed upwards. Therefore, there is a likelihood that Bonk price will continue rising as buyers target the key resistance point at $0.0000157, the highest swing on January 2nd.
