BONK’s price has surged by 24% as indicated on its weekly chart. This recent upward movement brings the memecoin above the 20-day SMA pointing to a possible short-term bullish trend.
Market analysts are keen on BONK as it nears crucial resistance at the upper Bollinger Band with expectations of a run to the upside if the price breaches with levels.
Price Action and Trend Analysis
BONK’s price has bounced back from a low of $0.00001766 near the lower Bollinger Band. This upward breakout has taken the price above the 20-day SMA currently located at $0.00002117.
– Advertisement –
However, the uptrend regained momentum after a green candle started to form suggesting a bullish reversal in the market after a continuous downtrend. BONK is now approaching the Upper Bollinger Band at $0.00002468 to retest the resistance level.
Key Resistance and Support Levels
The upper Bollinger Band at $0.00002468 is now acting as the immediate resistance level for BONK.
1-day BONK trading chart | source: TradingView
Market experts suggest that if the current price is able to break above this level, BONK price could soar to previous highs thus attracting more buyers.
Should this resistance hold, the price may enter a consolidation period as traders wait on more signals regarding its movement.
On the downside, the support is at the 20-day SMA currently at $0.00002117, a level that could trigger buying pressure if the price pulls back.
The next key support level is near $0.00001766 in case of increased selling pressure. This structure suggests that there is room for BONK to make bullish moves.
BONK RSI and Potential for Further Gains
As for the Relative Strength Index (RSI) indicator, a moderately bullish signal is seen. The RSI is currently at 55.54. A move about the 50 mark implies that buying pressure is exceeding the selling pressure and there is enough room for further gains before it reaches the overbought zone.
The rise in RSI from the oversold levels is in line with the current bullish trend. Some users on X (formerly Twitter) shared their predictions on BONK, saying that the price may rally to a range of $0.001-$0.00015.
At that price, BONK will have a market cap in the range of $7.48 billion–$11.22 billion. This bullish outlook demonstrates confidence from the community members in the possible massive growth of BONK in the market.
Read the full article here
