- BONK’s RSI and OBV have shown strong declines over the past month.
- A rebound to $0.00004 is likely, but whether the market structure can turn bullish will depend on capital inflows.
BONK fell 59% in the 30 days from November 20th to December 20th. This steady downward trend has seen significant selling on certain dates, such as December 9, when Bitcoin (BTC) was rejected from the $100,000 level.
Since then, memecoin has struggled to maintain key support levels. In fact, the recent BTC correction has moved BONK to another important support level at $0.0000265.
BONK bulls attempt to extend $0.0000338 resistance.
Source: BONK/USDT on TradingView
BONK’s daily RSI was 44, below the neutral 50, highlighting bearish momentum. OBV has also made a series of lower highs and lower lows over the past month. Steady losses since mid-November have highlighted that bears still dominate the broader market.
The recent decline forced memecoin to retest the 78.6% Fibonacci retracement level of $0.0000264, but no daily session ended below it. The altcoin price has surged 39% since hitting a local low of $0.0000248 on Friday.
The $0.00004 area used to be support, but has turned into resistance in recent weeks. It is expected that it will once again play a role of severe resistance. If the daily session closes above $0.0000394, the daily market structure will reverse to bullish.
Clearing levels are consistent with technical results.
Source: Coinglass
The $0.00004 resistance area identified on the daily chart appears to have significant liquidation levels concentrated around it. This can be seen in the two-week transition period liquidation heatmap.
AMBCrypto found that liquidity in the south is also relatively thin. Therefore, a move to retest this resistance is likely to occur in the coming days.
Source: Coinglass
The 24-hour liquidation heatmap indicated a potential range formation between $0.0000322 and $0.000035. Therefore, the liquidity that has built up around $0.000035 in recent days is likely to see a bearish reversal in the near term.
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Nonetheless, the magnetic zone around $0.00004 looked much stronger. Even if the price declines over the next day or two, my target for next week will be the $0.00004 resistance level.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.