Less than a week ago, Bonk [BONK] experienced a significant drop of 15% after breaking a crucial support level. However, since hitting a bottom on November 4th, the meme coin has embarked on a noticeable upward trend.
Market analysts speculate that the outcome of the U.S. election might influence the price movements of Bitcoin [BTC], potentially impacting Bonk coin as well. While short-term volatility poses a risk for traders, the prevailing bullish momentum in BTC could provide support for Bonk.
Assessing Bonk Coin’s Performance and Fibonacci Support Levels
During October, BONK traded within a specified range (highlighted in purple) with prices fluctuating between $0.0000197 and $0.0000241. The coin breached the lower boundary of this range on November 1st, plunging to a low of $0.0000174, which corresponds to the 78.6% Fibonacci retracement level.
The Fibonacci levels were determined based on Bonk’s previous rally in September. Remarkably, the coin elicited a strong bullish response near the 78.6% level, subsequently recording a 32.2% increase from its low of $0.0000171 over the past couple of days.
Despite this recovery, the daily chart signals a bearish market structure. To establish a bullish trend, Bonk must close a daily session above the $0.0000227 resistance level (indicated by the dotted orange line).
Although the recent price surge is encouraging, the On-Balance Volume (OBV) indicator continues to show a downward trend. It is likely that higher buying volumes are needed to surpass the local highs near $0.000024. On a positive note, the Relative Strength Index (RSI) has crossed the neutral 50 threshold, hinting at a potential shift in momentum favoring buyers.
Anticipated Significance of Previous Price Levels
An analysis of the liquidation heatmap over the past three months by CryptoCrypto identified $0.0000231 and $0.0000262 as key bullish targets. Notably, the former level aligns with a significant local resistance zone.
Given the recent absence of substantial buying activity, a potential retracement from $0.000023 seems more plausible in the near future than a breakout to higher levels. Market participants should exercise caution and stay informed about evolving trends.
Disclaimer: The views expressed in this article are personal opinions and should not be construed as financial advice, investment recommendations, or trading guidance.