Bonk Drops 12%, but Technicals Suggest a Strong Move UpBYBIT:BONKUSDT was able to escape the medium-term negative trend that it was trapped in over the past few weeks. Following its break out of a descending triangle pattern, BONK attempted to challenge the strong resistance level at $0.0000192765. However, sellers were quick to exert sell pressure on the meme coin, which caused it to pull back slightly in the past three days.
As a result, the Bonk price has entered into a consolidation phase between $0.0000088550 and $0.0000192765. If the crypto remains in this channel for the next 48 hours, then this period could be seen as an accumulation and liquidity building phase before a strong move to the upside if buyers decide to buy into BONK again. This potential bullish surge could see the BONK price flip the resistance level at $0.0000192765 into support.
Thereafter, continued buy support could elevate the meme coin’s value to as high as $0.0000290295. Risk-averse traders may want to wait for the Bonk price to close a daily candle above $0.0000192765 before entering into a long position.
This bullish thesis could be invalidated if the BONK price drops below the $0.0000088550 support in the upcoming days. In this alternative scenario, the crypto may fall to as low as $0.0000032570 within the following fortnight.
Bonk Enters a Bullish Cycle
Technicals suggested that BONK has entered into a bullish trend. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) were flagging bullish. The gradient of the MACD Histogram was positive, while the MACD line was positioned above the MACD Signal line. This suggested that BONK’s positive trend may carry on for the next couple of days.
In addition to this, the RSI was positioned above its Simple Moving Average (SMA). This is indicative of bulls having more strength than bears. As a result, it will be easier for buyers to boost the Bonk price in the next few days than it will be for sellers to drag it down.
