BONK’s Market Analysis

Overview

• BONK’s RSI and OBV revealed strong bearishness over the past month.
• A bounce to $0.00004 might be likely, but whether the market structure can shift bullishly would depend on capital inflows.

BONK fell by 59% in 30 days from 20 November to 20 December. This steady downtrend saw sizeable selling volume on specific days, such as 9 December, when Bitcoin (BTC) faced rejection from the $100k level.

Since then, the memecoin has struggled to hold key support levels. The recent BTC correction sent BONK to another vital support level at $0.0000265.

Resistance at $0.0000338

The daily RSI for BONK was at 44, below the neutral 50, indicating bearish momentum. The OBV also showed a series of lower highs and lower lows over the past month, highlighting that bears retained the upper hand across the market.

The drop forced BONK to retest the 78.6% Fibonacci retracement level at $0.0000264, without closing a daily session below it. After hitting local lows at $0.0000248 on Friday, the altcoin’s price increased by 39%.

The $0.00004 zone, previously support, has flipped to resistance. A daily close above $0.0000394 would shift the daily market structure bullishly.

Technical Findings

The $0.00004 resistance zone, highlighted on the daily chart, exhibited a significant concentration of liquidation levels. The 2-week lookback period liquidation heatmap indicated relatively sparse liquidity to the south, making a retest of this resistance likely in the coming days.

The 24-hour liquidation heatmap suggested a potential range formation between $0.0000322 and $0.000035. The liquidity built up around $0.000035 could lead to a short-term bearish reversal.

However, the resistance around $0.00004 appeared stronger. Even if there is a price dip in the next couple of days, the target for the coming week would remain $0.00004.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.