This article is also available in Spanish.
After a little backtracking, BONK is showing signs of renewed strength as bullish momentum begins to build. Recent price action shows that the bulls are back in control, pushing the token out of its recent slump.
As the market changes, traders now looking at potential breakouts, BONK’s next target is becoming clearer. Could this be the start of a new rally, or will the bears try to regain that one to rule once again?
In this article, we will provide an in-depth analysis of BONK’s recent price action following its pullback and examine the renewed bullish potential that has emerged. By examining key technical indicators, we will assess whether this change in momentum indicates the potential for further upside, or if the token may face resistance in the near term.
Technical Indicators: Structural Signs of Bullish Momentum
Recently, BONK price turned bullish on the 4-hour chart, retracing and moving above the $0.00001792 resistance level. The meme coin is trading above the 100-day Simple Moving Average (SMA) and showing strong momentum, with a current focus on direction at the $0.00002962 level.
Analysis of the 4-hour Relative Strength Index (RSI) shows that the bulls may be ready for a comeback. Although the RSI has dropped to 59% from the overbought zone, it remains above the 50% level, suggesting that bullish momentum remains. This stop indicates that although there has been some cooling, the market maintains an upward trend as long as the RSI remains above this key level.
Related Reading
Also, on the daily chart, BONK is showing positive momentum, evidenced by the resistance line on the daily candlestick. Without being below the 100-day SMA, this resistance line indicates that buyers are stepping in and pushing the price higher, causing selling pressure to decrease.
Finally, on the 1-day chart, a closer look at the 1-day RSI structure suggests that BONK may resume its full uptrend as the indicator’s signal line has risen above the 50% level and currently stands at 53%.
Potential Targets: Where Can BONK Head Next?
As BONK shows renewed bullish strength, key resistance levels to watch include the $0.00002320 mark, where previous price action has encountered barriers. If BONK can break through this level, it could pave the way forward advantageswhich may have the next target reach of $0.00002962 and above.
Related Reading
Conversely, if BONK faces key resistance at $0.00002320, the price may consolidate or attempt to test the $0.00001792 support level. A break below this range accompanied by strong volume would indicate a continuation of the downtrend, possibly targeting the support level at $0.00000942.
BONK was trading at around $0.00001803, representing a 2.33% decrease in the last 24 hours. Cryptocurrency’s the market capital expenditure stood at about $1.2 billion, while trading volume exceeded $128 million, marked down by 2.32% and 23.11%, respectively.
Featured image from LinkedIn, chart from Tradingview.com