BONK is currently facing turbulent waters as a sharp decline overshadows its recent price performance. After a period of impressive gains, the recent pullback raises concerns about an impending correction, with growing selling pressure suggesting that bullish momentum may be waning. As market sentiment changes, the cryptocurrency community is left wondering how far BONK will fall and whether it can regain its footing.
With uncertainty in the air, this analysis aims to analyze the recent sharp decline in BONK and explore the implications for future price action. By examining key technical indicators, market sentiment and trading patterns, we aim to assess the likelihood of an impending correction. This article will provide insight into potential support levels and resistance points, enabling traders and investors to make informed decisions in the face of uncertainty.
Recent performance: decline analysis
Recently, BONK price has turned bearish on the 4-hour chart, falling towards the 100-day simple moving average (SMA) and moving above the $0.00001792 support level. A decline from the overbought zone may indicate that traders are taking profits or that buying enthusiasm is waning, leading to a pullback.
Analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has fallen to 66%, retreating from the overbought zone. This decline indicates a shift in market momentum, indicating that buying pressure is beginning to diminish. A pullback from an overbought area often indicates that the market may be seeing a correction, as traders who bought during an uptrend may begin taking profits.
Moreover, BONK on the daily chart is showing negative momentum, as evidenced by the formation of a bearish candlestick, even while trading above the 100-day simple moving average. This situation reveals a potential contradiction in market sentiment. If the selling pressure continues and BONK is unable to maintain its position above the 100-day SMA, this could lead to a more significant price correction.
Finally, on the one-day chart, the RSI has risen above 50% and currently stands at 73%, reflecting strong optimistic sentiment and buying pressure. Although this indicates further price gains, proximity to the overbought area increases the chance of a reversal if buying slows.
Forecast of the BONK price path
With technical indicators pointing to an imminent pullback, BONK may face a price decline towards the $0.00001792 level. If this support is breached, it could open the door to further losses, which could push the price lower to $0.00000942 and other lower ranges.
However, if the bulls can come back and push the price above $0.00002320, the meme could continue its bullish momentum towards the next resistance level at $0.00002962. A successful breakout of this level could lead to additional gains, allowing the price to challenge other resistance levels above.