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BONK’s worth motion has been backwards and forwards in May, and the cryptocurrency is now basically again the place it began the month. Recent worth motion reveals that the token is making an attempt to stabilize at across the 200 EMA after being rejected by the native excessive close to the 0.00002581 stage.
This rejection led to a measured pullback in direction of $0.00001820. However, in keeping with a technical analysis on the TradingView platform, the retrace seems to be forming a bullish continuation setup with a 77% corrective transfer in view fairly than indicating a bearish reversal.
Bullish Market Structure Holds Firm For BONK
BONK’s worth retracement has introduced it immediately right into a zone of heavy technical curiosity. At the guts of this confluence lies the 200 EMA on the 4-hour timeframe, which might technically function the subsequent assist zone for the meme coin transferring ahead. In addition, the retracement aligns with the 0.618 Fibonacci stage, which is usually associated with bullish corrections. It additionally aligns with a day by day assist zone round $0.00001832 to $0.00001841 and a resistance zone round $0.00002034.
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Interestingly, this motion has led to a consolidation between these ranges since May 15, and in keeping with the TradingView analyst, the worth construction suggests consumers are stepping in to defend the development. This, in flip, has led to the formation of a better low.
From a quantity standpoint, every upward impulse has proven rising quantity because the first week of April. However, the latest decline occurred on diminishing quantity, hinting at exhaustion from sellers.
77% Upside Move If BONK Breaks Above Resistance
Even with the present vary, BONK is still within a bullish setup that might ship it in direction of a brand new 2025 excessive and probably in direction of its present all-time excessive ranges. The essential stage to look at now’s the purpose of management (POC) resistance at roughly $0.00001955. This stage beforehand acted because the pivot level earlier than the pullback and now serves as the brink for bullish continuation.
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A confirmed shut above this area would probably set off a fast enlargement transfer towards the subsequent resistance cluster round $0.00002581, earlier than finally reaching the expected worth goal of $0.00003243, which might carry it near its January 2025 open of $0.000035. As such, the projected goal if this performs out will translate to a 77% rally. The worth goal additionally aligns with a previous swing high on January 15 and January 18.
At the time of writing, BONK is buying and selling at $0.00001995, up by 1,6% up to now 24 hours. Its response right here, simply above the POC resistance, will likely be an essential deciding issue. If consumers manage to maintain pressure and safe a decisive breakout, the stage might be set for a robust rally into the higher resistance band and a retest of BONK’s 2025 swing excessive.
Featured picture from Shutterstock, chart from Tradingview.com
