- BONK is up almost 30% this week.
- The daily structure combined with the liquidation levels showed that the bulls could soon come to a standstill.
Bonk [BONK] fell below a key support level almost a week ago and fell 15% in three days. Since the local low on Monday, November 4, the meme coin has risen noticeably.
The US election results could have an impact on Bitcoin [BTC] price developments. Short-term volatility threatens traders, but BTC’s bullish momentum could help Bonk coin.
Bonk coin range breakdown and Fibonacci support levels
Source: BONK/USDT on TradingView
BONK traded within a range (purple) of $0.0000197 to $0.0000241 in October. On November 1, it fell below the lows of this range. In doing so, it fell to the $0.0000174 level, the 78.6% Fibonacci retracement level.
The retracement levels are plotted based on the rally the meme coin saw in September. The 78.6% level prompted an almost immediate bullish reaction. Over the past two days, BONK is up 32.2% from the low of $0.0000171.
However, the market structure on the daily chart remained bearish. A daily session close above the lower high at $0.0000227 (orange dotted) would be a bullish structure break.
Despite this strong recovery, the OBV has maintained its downward trend. Increased buying volume may be needed to push prices above local highs around $0.000024. On the other hand, the RSI moved past the neutral 50 mark, a tentative sign of a momentum shift in favor of buyers.
Previous range highs will likely be key again
AMBCrypto’s analysis of the liquidation heat map of the past three months showed that the $0.0000231 and $0.0000262 levels were the bullish targets. The first coincides with the local resistance zone.
Read Bonk’s [BONK] Price forecast 2024-25
Furthermore, the lack of significant buying volume recently meant that a $0.000023 reversal was more likely than a breakout in the coming days.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
Credit : ambcrypto.com
