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Analysis

Bonk coin up 19% in 24 hours: Here’s why a pullback could be next

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The lack of significant buying volume recently meant that a reversal from the local highs was more likely than a breakout in the coming days.
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Bonk coin up by nearly 30% since Monday, bulls expect another 10% move
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  • BONK is up by close to 30% this week.
  • The daily structure combined with liquidation levels showed that the bulls might be stalled soon.

Bonk [BONK] fell below a key support level nearly a week ago and dropped 15% in three days. Since setting a local low on Monday, the 4th of November, the meme coin has rallied noticeably.

The U.S. election results could have an impact on Bitcoin [BTC] price trends. Short-term volatility threatens traders, but BTC’s bullish momentum could aid Bonk coin.

Bonk coin range failure and Fibonacci support levels

BONK 1-day Chart

Source: BONK/USDT on TradingView

BONK had traded within a range (purple) in October that reached from $0.0000197 to $0.0000241. It fell below the lows of this range on the 1st of November. In doing so, it dropped as deep as the $0.0000174 level, the 78.6% Fibonacci retracement level.

The retracement levels were plotted based on the rally the meme coin saw in September. The 78.6% level offered an almost immediate bullish reaction. Over the past two days, BONK has gained 32.2% from its lows point at $0.0000171.

However, the market structure on the daily chart remained bearish. A daily session close above the lower high at $0.0000227 (dotted orange) would be a bullish structure break.

Despite this strong rebound, the OBV has maintained its downtrend. More buying volume might be necessary to push prices beyond the local highs around $0.000024. On the other hand, the RSI moved beyond neutral 50, a tentative sign of a momentum shift in favor of the buyers.

Former range highs likely to be critical once more

BONK Liquidation Heatmap

Source: Coinglass

AMBCrypto’s analysis of the liquidation heatmap of the past three months showed that the $0.0000231 and $0.0000262 levels were the bullish targets. The former coincides with the local resistance zone.

Read Bonk’s [BONK] Price Prediction 2024-25

Moreover, the lack of significant buying volume recently meant that a reversal from $0.000023 was more likely than a breakout in the coming days.

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

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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