With uncertainty in the air, this analysis aims to analyze the recent sharp decline of BONK and explore the implications for its future price action. By examining key technical indicators, market sentiment, and trading patterns, we aim to assess the likelihood of an impending correction. This piece will provide insights into potential support levels and resistance points, enabling traders and investors to make informed decisions in the face of uncertainty.

Recent Performance: Analyzing The Decline

Recently, BONK’s price has turned bearish on the 4-hour chart, retracing toward the 100-day Simple Moving Average (SMA) and moving above the $0.00001792 support level. The drop from the overbought zone may signal that traders are taking profits or that buying enthusiasm is diminishing resulting in the pullback.

An analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has decreased to 66%, retreating from the overbought territory. This decline suggests a shift in market momentum, indicating that buying pressure is beginning to wane. A retreat from the overbought zone often signals that the market may be experiencing a correction, as traders who bought during the bullish run might start to take profits.

Furthermore, on the daily chart, BONK is exhibiting negative momentum, as evidenced by the formation of a bearish candlestick, even while trading above the 100-day SMA. This situation reveals a possible contradiction in market sentiment. Should selling pressure continue and BONK is unable to maintain its position above the 100-day SMA, it may lead to a more significant price correction.

Finally, on the 1-day chart, the RSI has climbed above 50% and currently sitting at 73%, reflecting strong optimistic sentiment and buying pressure. Although this points to more price gains, the closeness to the overbought zone increases the chance of a reversal if buying slows down.

Predictions For The Price Trajectory Of BONK

With technical indicators suggesting an impending pullback, BONK may face a decline in price toward the $0.00001792 level. If this support is breached, it could open the door to further losses, potentially pushing the price down to $0.00000942 and other lower ranges.

However, if the bulls manage to mount a comeback and push the price above $0.00002320, the meme coin could continue its upward momentum toward the next resistance level at $0.00002962. A successful breach of this level may trigger additional gains, allowing the price to challenge other resistance levels above.

As the market shifts, traders are now eyeing a potential upside breakout, with BONK’s next targets becoming increasingly clear. Could this be the beginning of a fresh rally, or will the bears attempt to reclaim their dominance once again?

In this article, we’ll provide an in-depth analysis of BONK’s recent price action following its pullback and explore the renewed bullish strength that has emerged. By examining key technical indicators, we’ll assess whether this shift in momentum signals the potential for further upside and a breakout, or if the token is likely to face resistance in the near term.

Technical Indicators: Signs Of Bullish Momentum Building

Recently, BONK’s price has turned bullish on the 4-hour chart, rebounding and moving above the $0.00001792 resistance level. The meme coin is trading above the 100-day Simple Moving Average (SMA) and is demonstrating strong momentum, with a current focus on moving toward the $0.00002962 level.

An analysis of the 4-hour Relative Strength Index (RSI) indicates that bulls may be poised to make a comeback. Although the RSI has decreased to 59% from the overbought zone, it remains above the 50% threshold, suggesting that bullish momentum is still present. This positioning indicates that while there has been some cooling off, the market retains the potential for upward movement as long as the RSI stays above this key level.

Also, on the daily chart, BONK is displaying positive momentum, evidenced by a rejection wick on the present daily candlestick. Despite being below the 100-day SMA, this rejection wick shows that buyers are stepping in and pushing the price higher, causing the selling pressure to diminish.

Finally, on the 1-day chart, a close look at the 1-day RSI formation suggests that BONK may fully resume its upward movement as the indicator’s signal line has climbed above the 50% threshold and is currently positioned at 53%.

Potential Upside Targets: Where Could BONK Be Headed Next?

As BONK demonstrates renewed bullish strength, key resistance levels to watch include the $0.00002320 mark, where previous price action has encountered obstacles. If BONK can break through this level, it could pave the way for further gains, potentially reaching the next target of around $0.00002962 and beyond.

Conversely, if BONK faces significant 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 could signal a continuation of the downward trend, possibly targeting the support level at $0.00000942.

BONK was trading at about $0.00001803, showing a 2.33% decline over the last 24 hours. The cryptocurrency’s market capitalization stood at roughly $1.2 billion, while trading volume exceeded $128 million, marking decreases of 2.32% and 23.11%, respectively.