BONK Eyes Recovery Rally as Fed Meeting Looms with Elliott Wave Breakout

Key takeaways

📈 Technical Breakout: BONK has broken out of a long downward channel and bounced from critical support near $0.00002200, suggesting a potential trend reversal.

🏛️ Fed Meeting Catalyst: The Federal Reserve meets September 16-17 with markets expecting a 25-basis-point rate cut, which could trigger short-term volatility across risk assets.

📊 Elliott Wave Setup: Analysts identify a clear Elliott Wave pattern with the rally unfolding in five sub-waves, now pointing toward key Fibonacci retracement zones.

💰 High Activity: Open interest on BONK perpetuals holds near $245M while futures turnover reached $488M in the past day, reflecting strong positioning ahead of catalysts.

🎯 Price Targets: If momentum holds, upside targets stand above $0.00002600, with next extension pointing toward $0.00003400 for potential parabolic rally.

Deep dive

BONK's technical setup is attracting attention as the Federal Reserve prepares for its September 16-17 policy meeting, where markets anticipate a 25-basis-point rate cut that could impact crypto volatility.

Elliott Wave analysis shows BONK has completed a corrective phase and broken out of a downward channel, with the token bouncing from critical support near $0.00002200.

This level previously acted as a demand zone during consolidation, and the successful retest suggests it may now serve as a base for recovery.

Trading activity supports this outlook, with elevated open interest of $245M on perpetuals and $488M in futures turnover indicating strong positioning ahead of the Fed decision.

While the macro catalyst could trigger short-term volatility, the technical structure suggests BONK may be preparing for a more sustained rally if broader market sentiment improves.

Polaris insights AI-generated

Source:

99bitcoins.com

Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.