- BONK’s RSI and OBV revealed robust bearishness over the previous month
- A bounce to $0.00004 is perhaps seemingly, however whether or not the market construction can shift bullishly would rely upon capital inflows
BONK fell by 59% in 30 days from 20 November to twenty December. This regular downtrend noticed some sizeable promoting quantity on sure days, corresponding to 9 December, when Bitcoin [BTC] confronted rejection from the $100k- stage.
Since then, the memecoin has struggled to carry key assist ranges. In actual fact, the newest BTC correction despatched BONK to a different important assist stage at $0.0000265.
BONK bulls try to scale the $0.0000338 resistance
Supply: BONK/USDT on TradingView
The every day RSI for BONK was at 44 and beneath the impartial 50, underlining bearish momentum. The OBV additionally made a sequence of decrease highs and decrease lows over the previous month. Collectively, with regular losses since mid-November, it highlighted that the bears nonetheless had the higher hand throughout the market.
The current drop compelled the memecoin to retest the 78.6% Fibonacci retracement stage at $0.0000264, however it didn’t shut a every day session beneath it. Since hitting the native lows at $0.0000248 on Friday, the altcoin’s value has shot up by 39%.
The $0.00004 zone had been a assist, then flipped to resistance in current weeks. It’s anticipated that it’s going to function a stern resistance as soon as once more. A every day session shut above $0.0000394 would flip the every day market construction bullishly.
Liquidation ranges agree with technical findings
Supply: Coinglass
The $0.00004 resistance zone recognized on the every day chart had a sizeable focus of liquidation ranges round it, the 2-week lookback interval liquidation heatmap confirmed.
AMBCrypto discovered that the liquidity to the south was comparatively sparse as nicely. Due to this fact, a transfer to retest this resistance is extremely seemingly within the coming days.
Supply: Coinglass
The 24-hour liquidation heatmap pointed to a possible vary formation between $0.0000322 and $0.000035. Therefore, it’s potential that the liquidity constructed up round $0.000035 in current days may see a short-term bearish reversal.
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And but, the magnetic zone round $0.00004 appeared a lot stronger. Even within the occasion of a value dip over the subsequent day or two, the goal for the subsequent week could be the $0.00004 resistance.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
