As of the current moment, BONK has been showing an upward trend on the longer timeframes. However, its bullish movement has somewhat slowed down in the past month, with the memecoin trading within a specific range.
Over the last fortnight, Bitcoin [BTC] successfully broke out from the descending channel pattern and approached its highest point ever. A decisive move by BTC is crucial to pave the way for BONK’s next significant upward movement.
Weakening Buying Pressure Might Impact the Strength of the Uptrend
When observing the weekly timeframe, the major swing high and low were noted at $0.0000339 and $0.000015. The low was registered back in September, and since then, BONK has managed to recover and surge higher. This surge led it past $0.0000232 towards the end of September.
This shift in price dynamics into a bullish territory has remained intact until the present time. BONK’s price has been consolidating within a range of $0.0000198 to $0.0000241, with the $0.000022 mark serving as an immediate resistance level.
Although this range is relatively new, the bullish sentiment has been dominant on both the weekly and daily charts. Nonetheless, there is a possibility that the memecoin might consolidate further within this range, as indicated by the gradual decline in its On-Balance Volume (OBV) – a signal worth noting.
Furthermore, the Relative Strength Index (RSI) has been consistently above the neutral 50 level, underscoring the bullish momentum on the daily timeframe.
Current Outlook in the Short Term – Favorable?
The funding rate exhibited a notable increase in the early hours of 29 September, indicating a surge in bullish sentiment. Concurrently, the price of BONK as well as the Open Interest showed an upward trend.
It is anticipated that the $0.000022 and $0.000024 price levels could pose significant challenges for the bulls in the upcoming days. If the price manages to surpass $0.0000241, a potential move towards $0.0000339 – the next crucial level on the weekly chart, could be in the cards.
Disclaimer: The insights provided in this article do not qualify as financial, investment, trading, or any form of advice, and solely represent the author’s perspective.