BONK hits the brakes on its rally – What next?

• BONK has a bearish market construction on the 12-hour chart.
• The sentiment behind the meme coin additionally leaned bearishly.

Bonk [BONK] posted sturdy positive aspects through the previous week, gaining 92% from eighth January to tenth January. Regardless of the exceptional rally, the upper timeframe value chart confirmed that BONK had a bearish outlook.

At press time, BONK bulls fought to defend a degree of assist at $0.000013. A drop beneath this degree would probably see costs slide one other 25%-30% decrease.

Understanding the bearish bias of BONK

Supply: BONK/USDT on TradingView

On the 12-hour chart, BONK posted a bearish order block at $0.000016. This zone was highlighted by the purple field, and has been in play since 29 December. On tenth and eleventh January, BONK bulls briefly pushed costs above this space.

Nonetheless, they couldn’t set up an H12 buying and selling session shut above it. Furthermore, the bears have been capable of drive costs decrease as soon as extra, signifying vendor dominance. The RSI was at 48 at press time and gave an early sign that momentum has flipped bearishly.

Regardless of these bearish observations, the OBV has stayed above the December pump’s excessive. This degree has acted as a assist over the previous few days. This recommended that the promoting quantity has not been overwhelming, and underlined that the bulls have some hope.

The market sentiment of BONK was adverse

Supply: Santiment

AMBCrypto checked out some social metrics from Santiment to higher perceive the place BONK stood. The social quantity has been trending downward over the previous month.

The weighted sentiment behind the meme coin was additionally constantly adverse throughout its downtrend.

Supply: Coinglass

The rally of practically 100% noticed an enormous bounce within the Open Curiosity. This meant speculators have been drawn to wager on their short-term bullish conviction on the token.

However after the rejection on the bearish order block, the OI has fallen alongside the costs.

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This indicated bearish market sentiment and discouraged longs. Traders and swing merchants can await the $0.000016 space to be flipped to assist earlier than on the lookout for shopping for alternatives.

Alternatively, a revisit to the $0.00000925 degree may additionally yield a sizeable bounce.

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.