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Cryptocurrency News Articles
BONK (BONK) Faces Correction Fears As Market Sentiment Shifts; Can It Regain Its Footing?
Sep 29, 2024 at 03:00 pm
BONK is currently facing turbulent waters as a sharp decline casts a shadow over its recent price performance. After a period of impressive gains, the recent downturn is raising concerns about an impending correction.
BONK crypto is currently experiencing a sharp decline, which could be a sign of an impending correction. After a period of impressive gains, the recent downturn is raising concerns. As the market sentiment shifts, this analysis aims to assess the recent sharp decline of BONK and explore the implications for its future price action.
Recent Sharp Decline: Analysis
BONK’s price recently turned bearish on the 4-hour chart, retracing toward the 100-day Simple Moving Average (SMA) after facing strong selling pressure at $0.00002320. This pullback follows a 4-day rally that saw the meme coin rise from around $0.00001792.
As the 4-hour chart reveals, BONK pulled back after failing to breach the resistance at $0.00002320, with the drop forming a lower wick on the 4-hour candle. This move might indicate that traders were entering the market on the downturn, suggesting an interest in buying the dip.
An analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has decreased to 66%, slowly retreating from the overbought territory. This decline suggests a shift in market momentum, indicating that buying pressure is beginning to wane.
A retreat from the overbought zone often signals that the market may be experiencing a correction, as traders who bought during the bullish run might start to take profits. This occurrence could explain the recent pullback in BONK’s price.
Moreover, on the daily chart, BONK is exhibiting negative momentum, as evidenced by the formation of a bearish candlestick, even while trading above the 100-day SMA. This situation reveals a possible contradiction in market sentiment.
Should selling pressure continue and BONK is unable to maintain its position above the 100-day SMA, it may lead to a more significant price correction.
Finally, on the 1-day chart, the RSI has climbed above 50% and currently sits at 73%, reflecting strong optimistic sentiment and buying pressure. Although this points to more price gains, the closeness to the overbought zone increases the chance of a reversal if buying slows down.
BONK Price Predictions: What’s Next?
Technical indicators suggest an impending pullback, and BONK may face a decline in price toward the $0.00001792 level. If this support is breached, it could open the door to further losses, potentially pushing the price down to $0.00000942 and other lower ranges.
However, if the bulls mount a comeback and push the price above $0.00002320, the meme coin could continue its upward momentum toward the next resistance level at $0.00002962. A successful breach of this level may trigger additional gains, allowing the price to challenge other resistance levels above.
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The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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