Low cap MEME coin, good price structure, price events analysis$HONK price history and some events key points for new investors.
1. On the evening of 13 April, Iran launched a drone and missile attack on Israel. Altcoins market dumped hard while $HONK recovers quickly, breaks 33 days downtrend and enters accumulation zone where people are not selling below 0.004800 - 0.004550 for around 22 days.
2. On 8 May, selling was initiated by mainly one big wallet followed by couple other bigger wallets and some panic selling from smaller wallets.
3. $HONK bottoms as it’s ~95% down from ATH, volume (USDT) drops ~3 times, trend reverses to upside and within 10 days price goes up by 300%.
4. Price bumps into major resistance point at 0.008100 where swing traders who bought earlier at the bottom are taking profits. Price falls back into accumulation range.
5. The price is pumped by one wallet (~130k USDT) and later on dumped for a loss.
6. Price is back to accumulation range, low volatility, people are not selling below 0.004550 Supply and demand are about the same.
Which direction $HONK goes?
Bullish scenario. Key things.
1. Price is currently within accumulation range for around 30 days as people are not willing to sell bellow 0.00450 which signals strength. The panic sell was caused mainly by one big wallet which was bought back quickly (positive hands change (300 new Telegram group users within 10 days)). If $HONK continues to stay within accumulation zone and considering bullish market sentiment as majority anticipates bull market to continue with full swing, eventually there should be less supply and more demand which would move price up.
2. $HONK is 5 months old and low market cap. It’s not so immature like few days to be based on extreme speculation and gambling. Yet it’s not so old to have bigger market cap and give less potential upside reward in multiples. It’s 5 months and it has decent price structure: 95% retracement from ATH, bottom reversal, nice accumulation range and as it’s low market cap it has potential of 300x once the bull market fully kicks in and money starts to flow in.
3. Telegram group is shilling on Twitter every day, new exchanges and more marketing within time.
Bearish scenario. Key things.
1. People might sell $HONK as they chase other coins pumping (careful, don’t get REKT). In such case I would expect $HONK price to slowly bleed over time and reach lower price demand/support levels like 0.003200 before bouncing back up.
2. In worse case scenario if Bitcoin experience major pullback below 55k I would potentially see $HONK slowly bleeding down to 0.001850 and forming double bottom on weekly candlestick before going up.
3. How likely for the price to go below 0.001850? Considering bullish crypto market sentiment and anticipation, new money flow in, meme coins leading the way, $HONK having maturity of 5 months, good hands change over the time, good price structure I don’t see price reaching lower bottom (maybe if whole bull market is cancelled, extremely unlikely).
Overall, I think $HONK investment offers good risk reward ratio as in a short to medium term the price might dip lower but in a long term within next 6-12 months it can go up 300x.
