Can BONK Price Break Through Resistance Levels?
Over the course of 30 days, starting from 20th November to 20th December, BONK experienced a significant decline of 59%. This continuous downward trend witnessed substantial selling activity on specific days, notably on 9th December when Bitcoin (BTC) encountered resistance around the $100,000 mark.
Following this, the meme-based cryptocurrency struggled to maintain essential support levels. The recent correction in Bitcoin sent BONK down to a crucial support level at $0.0000265.
Bulls Striving to Overcome $0.0000338 Resistance
The daily Relative Strength Index (RSI) for BONK stood at 44, below the 50 neutral mark, indicating a bearish momentum. Additionally, the On-Balance Volume (OBV) displayed a pattern of declining highs and lows in the past month. These factors, coupled with consistent losses since mid-November, indicate the prevailing dominance of bears in the market.
Following a recent drop, the cryptocurrency revisited the 78.6% Fibonacci retracement level at $0.0000264, managing to remain above it during the daily close. After touching local lows at $0.0000248 last Friday, the coin’s price surged by 39%.
The $0.00004 range initially acted as a support level and later flipped to resistance in recent times. This area is anticipated to function as secure resistance again. A daily closing above $0.0000394 could potentially signal a bullish shift in the market structure.
Alignment of Liquidation Levels with Technical Analysis
The daily chart identified a strong concentration of liquidation levels around the $0.00004 resistance zone, as shown in the 2-week liquidation heatmap analysis. Conversely, there was notably less liquidity towards the downside. Hence, a move to retest the aforementioned resistance level appears probable in the near future.
Analysis of the 24-hour liquidation heatmap hinted at a potential consolidation range between $0.0000322 and $0.000035. Therefore, the buildup of liquidity around $0.000035 could lead to a brief bearish reversal.
Despite this, the region surrounding $0.00004 presents a formidable barrier. Even if a temporary price decline occurs in the next few days, the primary target for the upcoming week remains the $0.00004 resistance level.
Disclaimer: The opinions expressed in this article are solely the author’s and do not constitute financial or investment advice.