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After a brief retreat, Bonk There are signs of renewed strength as bullish momentum begins to build. Recent price action indicates that bulls have regained control, pulling the token out of its recent doldrums.
As the market changes, Merchants Now that BONK’s next target is becoming clearer, we are targeting a potential upside breakout. Is this the start of a new rally? Or is the bears just getting their act together? dominance Again?
In this article, we will provide an in-depth analysis of BONK’s recent price action and examine the renewed strength of the bullish momentum following the pullback. We will review key technical indicators to assess whether this change in momentum indicates further upside and breakout potential or whether the token is likely to face resistance in the short term.
Technical indicators: Signals of building bullish momentum
Recently, the price of BONK has turned bullish on the 4-hour chart and bounced, breaking above the $0.00001792 resistance level. The meme coin is trading above its 100-day simple moving average (SMA) and is showing strong momentum, currently focusing on a move towards the $0.00002962 level.
The 4-hour Relative Strength Index (RSI) analysis suggests that a bullish reversal is likely. The RSI has declined to 59% from the overbought zone but remains above the 50% threshold, suggesting that bullish momentum still exists. This positioning suggests that there has been some cooling, but as long as the RSI remains above this key level, the market is likely to move higher.
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Also, on the daily chart, BONK is showing positive momentum, which is evidenced by the current rejection wick on the daily candlestick. Despite being below the 100-day SMA, this rejection wick shows that buyers are stepping in to push the price higher, which reduces the selling pressure.
Finally, if we take a closer look at the 1-day RSI formation on the 1-day chart, there is a possibility that BONK will fully resume its uptrend, as the signal line of the indicator has crossed the 50% threshold and is currently at 53%.
Potential Upside Targets: Where is BONK headed next?
Key resistance levels to watch as BONK shows new strength include the $0.00002320 mark, where the previous price action encountered a hurdle. If BONK can break this level, it could open the way for further upside. gainPotentially, it could reach the next target of around $0.00002962.
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Conversely, if BONK encounters significant resistance at $0.00002320, the price may consolidate or attempt to test the $0.00001792 support level. If it breaks below this range and is accompanied by strong volume, the downtrend may continue, possibly targeting the $0.00000942 support level.
BONK is trading at around $0.00001803 and has fallen by 2.33% in the last 24 hours. market The capitalization was approximately $1.2 billion, and the trading volume exceeded $128 million, down 2.32% and 23.11%, respectively.
Featured image from LinkedIn, chart from Tradingview.com