Mammon (@Darco_trading) presented a technical overview of the cryptocurrency BONK, highlighting key price levels and potential patterns that suggest an incoming bullish rally.
Mammon pointed out that BONKâs price had recently filled much of the imbalance and tapped into a marked demand zone. This zone coincides with the 0.618 Fibonacci retracement level, which is widely recognized as a critical indicator in technical analysis.
Such a level often signals a potential reversal or continuation in price trends. Moreover, BONKâs price action included a sweep of the liquidity from the previous weekâs low, effectively clearing out stop losses and gathering liquidity for a possible upward movement.
The analysis indicated that BONK price had dipped below last weekâs low, suggesting a liquidity sweep. This event could have been orchestrated by market makers to trap short positions, setting the stage for a subsequent rise in price.
According to Mammon, BONKâs price has been consolidating near the bottom of the demand zone following the liquidity sweep. This behavior is reminiscent of a âspringâ action found in Wyckoff accumulation patterns, where the price briefly dips below support before moving higher.
This consolidation around key support levels hints that a breakout may be imminent, particularly as the price shows rejection of lower levels.
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Show more +Insights on BONK Price from Seems Legit Research
Adding to this analysis, Seems Legit Research (@SLResearch_) presented a different perspective on BONKâs potential. Their examination of a 4-hour chart outlined two scenarios for the cryptocurrencyâs future:
Bull Market Scenario: They suggested that BONK might be in a bull market, having formed a double bottom. The price is currently testing a crucial resistance level, and if the RSI can hold above the 50 mark, it could confirm the start of a bullish trend.
Rejection Scenario: Conversely, if the RSI fails to maintain above 50, it could indicate weakness and potentially lead to a continuation of the downtrend.
Deeper Analysis of the 4-Hour Chart
Seems Legit Research provided additional insights into BONKâs chart, detailing several key aspects:
The chart showed a descending trendline indicating a corrective phase and an ascending trendline acting as support. The price was testing the convergence of these lines, suggesting either a breakout or a rejection could occur.
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They noted that trading volume was low during the weekend, which typically does not favor significant price movements. The volume profile indicated heavy activity between $0.000002200 and $0.000002400, suggesting significant resistance at these levels.
The RSI was at 49.93, testing the 50 level, which serves as a neutral threshold. A potential bullish divergence was forming, indicating a buildup of bullish momentum.
Signs of a double bottom near the support line were evident, suggesting a possible reversal of the downtrend. For confirmation, the price would need to break above the descending trendline and retest higher resistance levels.
With an OBV of 25.67T, there was a lack of significant buying pressure during recent price movements, suggesting that a breakout might face challenges unless volume increases.
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