The BONK price movements have introduced it near a important help degree, and its response might make or break its value trajectory from there. An in depth technical evaluation on the TradingView platform means that the cryptocurrency’s present setup might result in both a bullish breakout to retest its all-time excessive at $0.00005825 or an additional decline under $0.00001497, relying on how value motion unfolds within the coming days.
Descending Channel And Double Bottom Pattern For BONK
Meme cryptocurrency BONK has largely been buying and selling inside a descending channel for the past three months, which has been characterised by the formation of decrease highs and decrease lows on the every day candlestick timeframe chart. This descending channel sample kickstarted after BONK reached a brand new all-time excessive of $0.00005825 on November 20, 2024.
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As famous by the analyst on TradingView, the BONK value is presently exhibiting indicators of a wholesome retracement after rejecting at a decrease excessive throughout the descending channel. This retracement has now seen the meme coin at a important help zone round $0.000026 throughout the descending channel. Interestingly, the retest of this help zone hints at the opportunity of a double backside sample, as the worth chart reveals BONK had bounced off this zone on December 20, 2024.
The double backside is the bullish situation for the BONK value. However, the analyst highlights that affirmation on decrease timeframes is important for this double-bottom situation to materialize. Specifically, a bullish Internal Change of Character (I-CHoCH) throughout the present help zone would sign that consumers are re-entering the market, which might enhance the chance of a breakout from the descending channel.
Key Price Levels To Watch For BONK Price
The $0.000026 degree is highlighted as a critical support degree to keep watch over within the coming days to see the way it ultimately performs out for BONK. Should BONK handle a rebound from this degree, step one towards a sustained bullish transfer could be to interrupt above the higher trendline of the descending channel, which might be wherever between $0.000030 and $0.000031.
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Upon confirming the breakout, the analyst recognized several resistance levels that BONK would encounter on its path to a brand new all-time excessive. These ranges embrace $0.00003657, $0.00004754, and a robust resistance level at $0.00006340.
However, the analyst additionally factors out that there stays a danger of additional retracement and even panic promoting, particularly if BONK fails to exhibit bullish confirmations by an I-CHoCH within the decrease timeframes. This situation might trigger a break under $0.000026 to succeed in one other robust help zone, the place an analogous I-CHoCH affirmation would nonetheless be essential to validate a possible bounce. Without these confirmations, the bullish outlook could be invalidated.
At the time of writing, BONK is buying and selling at $0.00002863 and is up by 5% prior to now 24 hours.
Featured picture created with Dall.E, chart from Tradingview.com
