Bonk coin’s 52% surge: Could it be the next big crypto?
Journalist
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Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
- The demand behind BONK has fallen regardless of the short-term rally.
- The opportunity of a spread formation was current, and BONK’s response on the native resistance could be illuminating.
Bonk [BONK] costs bounced 52% up to now 24 hours. This got here after a dip right into a zone of demand that AMBCrypto had reported as vital a few days in the past.
Nevertheless, the current positive factors have introduced the meme coin to a resistance zone from the ninth of December.
The worth motion of the previous week advised two prospects for BONK. The sturdy upward momentum pointed towards the probability of a breakout previous the native highs.
But, proof from technical evaluation advised that bulls weren’t as sturdy as they appeared. Might we see the entire earlier day’s positive factors worn out quickly?
The decrease timeframe consolidation zone was defended firmly
Supply: BONK/USDT on TradingView
The world marked in cyan represented a consolidation area on the four-hour chart that had been examined a number of occasions up to now few days. The latest retest noticed BONK bounce by near 52% inside a day.
Nevertheless, the On-Steadiness Quantity (OBV) fashioned a decrease excessive in comparison with ninth December. This indicated that the current purchase was not spurred by real demand.
The RSI additionally dipped on the 12-hour chart to sign weakened bullish momentum.
A breakout previous the $0.0000149 degree and a retest would provide a shopping for alternative focusing on the 61.8% Fibonacci extension degree at $0.0000219.
Alternatively, it was additionally doable that BONK would face rejection at $0.0000149 and fall to the the native lows at $0.00000995.
The elevated Open Curiosity helped clarify the surge in costs
Supply: Coinglass
The OBV offers with the shopping for and promoting quantity per buying and selling session within the spot market.
In the meantime, the information from Coinglass confirmed that the elevated Open Curiosity of the previous 24 hours got here alongside a fast enhance in costs.
Learn Bonk’s [BONK] Worth Prediction 2023-24
The inference was that the rally was not pushed by shopping for strain however by OI. Such a rally can final solely a short time and is extra more likely to retrace.
Due to this fact, regardless of the sturdy bullish momentum, it was anticipated that BONK would descend towards $0.00000995 as soon as extra.
