Over the recent weeks, Bonk [BONK] has experienced a downward trend with no clear end in sight for its retracement phase. The broader meme coin market has also seen declines over the past month and is yet to show signs of recovery.
Analysis of technical indicators suggests the possibility of a short-term price rebound. However, this would entail a retesting of the resistance zone that was previously established earlier this month.
Bearish Crossover Indicated by Moving Averages
Recent data shows that the 20 and 50-period moving averages have crossed above the price, signaling a bearish trend. A dip below $0.00004 in the second week of December further supports the notion of an impending significant retracement.
Despite finding support at the 78.6% Fibonacci retracement level of $0.0000264, Bonk (BONK) bulls still have challenges ahead. Key areas to address include the formation of lower highs in the OBV since mid-November and the need to break the bearish market structure by surpassing $0.000035 and establishing a higher low afterwards.
Forecast for Bonk Coin’s Price Movement
An analysis of the 1-month lookback period liquidation chart revealed a concentration of liquidity at $0.000049, making it a probable target for BONK in the near future. Prior to that, a downward minor shift may occur around the $0.00004 region following a retesting.
The 2-week liquidation heatmap spotlighted the potential resistance at $0.00004 and projected liquidation levels that are likely to be cleared before any retracement.
It remains uncertain how deep this retracement might be, with the extent relying on the strength of BONK bulls and the prevailing bullish momentum of Bitcoin during that period.
Should Bonk fall below $0.00004, a significant technical resistance zone, potential hurdles for the bulls lie within the $0.000035-$0.000037 range. It is advisable for all except day traders to tread cautiously on Bonk’s bullish prospects unless the $0.00004 resistance transforms into a support level.
Disclaimer: The opinions expressed are personal and should not be interpreted as financial advice, investment guidance, trading recommendations, or any other professional counsel.