The BONK worth elevated significantly in February, breaking out from diagonal and horizontal resistance ranges.
Will the value maintain this improve, or was the motion only a reduction rally? Let’s discover out.
BONK Breaks Out From Resistance
The technical evaluation of the each day timeframe reveals the BONK worth broke out from a descending resistance trend line on February 7. Before the breakout, the development line had existed for 55 days.
More particularly, the development line had existed for the reason that all-time excessive on December 15, 2023. Today, BONK reached a high of $0.000014 before falling slightly.
The each day Relative Strength Index (RSI) provides a bullish studying. Traders make the most of the RSI as a momentum indicator to evaluate whether or not a market is overbought or oversold and whether or not to build up or promote an asset.
If the RSI studying is above 50 and the development is upward, bulls nonetheless have a bonus, but when the studying is beneath 50, the other is true. The indicator exceeded 50 as soon as the value broke out, legitimizing the breakout.
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BONK Price Prediction: Will the Breakout Be Sustained?
The six-hour chart provides a extra undetermined development than the bullish each day timeframe readings. This is due to conflicting readings from the value motion and the Relative Strength Index (RSI).
The worth motion reveals that BONK broke out from a horizontal and Fib resistance at $0.000014.
However, the six-hour RSI reveals a pronounced bearish divergence (inexperienced). Such divergences happen when a momentum lower accompanies a worth improve. They typically result in bearish development reversals.
So, whether or not the BONK worth bounces or closes below the $0.000014 area can decide the long run development’s route.
A profitable bounce can catalyze an 18% BONK increase to the next resistance at $0.000016, whereas a breakdown could cause a 14% drop to the closest assist at $0.000012.
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Disclaimer
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