BONK’s bullish run begins, but why you should stay cautious

    BONK has strong capital inflows and bullish momentum at press time.
    The resistance zone overhead forced buyers to retreat.

As a crypto investor with some experience under my belt, I’ve seen my fair share of market volatility and price action. And right now, BONK is presenting an intriguing situation.


As a researcher studying the crypto market, I’ve noticed that Bonk [BONK] was among the top-performing assets last week, experiencing a significant surge in trading activity. This strong performance indicated a high level of market confidence. However, this bullish sentiment has since been dampened.

As a market analyst, I examined BONK‘s price action following its early March rally and identified the Fibonacci retracement levels. At the time of analysis, the price was hovering slightly below the 61.8% level.

This meant that further losses were likely after the failed attempt to climb past $0.0000293.

The 50% resistance stood firm yet again

I encountered a setback when BONK failed to break through the significant resistance level at $0.0000293 on the 24th and 25th of April. This level held strong during late March, having functioned as a barrier before.

Moreover, the retracement in mid-April took the meme coin nearly to the February lows.

If the price drops below the prior swing low of $0.0000176 on the larger timeframe chart, then the market structure could potentially shift to a bearish trend.

The purple range on the chart may cause prices to pause and possibly form a temporary price range before continuing their upward trend.

With an RSI of 56 and a CMF of +0.1, these technical indicators pointed towards buying activity and robust investment inflows. Yet, they may not be sufficient to prevent a short-term drop in the meme coin.

A range within a range?

According to the price chart, the technical range indicated that the lowest points were at $0.000014. Meanwhile, the liquidation heatmap revealed significant clusters of liquidation levels at $0.000021 and $0.0000315.

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Based on the current market conditions, it’s more probable that BONK will fluctuate around these prices rather than dropping down to the $0.000014 support level within the next week or so.

Hence, swing traders could use this information to form their trading biases.

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2024-04-30 00:07