Bonk Coin [BONK], the meme coin that has been on the radar of many crypto enthusiasts, experienced a notable drop last week, falling 15% in just three days. This decline was driven by the coin’s breakdown below a key support level, with prices dipping to $0.0000174 on November 1st. However, after setting a local low on November 4th, BONK has started to rally, sparking hopes for a potential price recovery.
Bonk Coin’s Price Action – Support Levels And Fibonacci Retracement
Bonk Coin traded within a defined range throughout October, oscillating between $0.0000197 and $0.0000241. The breakdown below this range in early November was a critical move, as the meme coin dipped below the 78.6% Fibonacci retracement level at $0.0000174. This retracement level was drawn from the rally BONK experienced in September, and historically, Fibonacci levels often act as important price barriers.
Interestingly, the $0.0000174 level quickly turned into a support zone, triggering a sharp recovery. Over the past two days, coin gained a substantial 32.2%, rising from its low of $0.0000171. While this rebound is encouraging, it’s important to note that the broader market structure remains bearish. A daily close above the resistance level of $0.0000227 would be a significant indication of a structural shift in favor of the bulls.
Market Sentiment and Volatility
Despite the recent rally, the market structure is still a concern for traders. The On-Balance Volume (OBV) indicator continues to trend downwards, signaling a lack of strong buying interest. This suggests that additional volume is required for BONK to break through its recent resistance levels around $0.000024.
On a more positive note, the Relative Strength Index (RSI) has risen above the neutral 50 mark, indicating that there could be a momentum shift in favor of buyers. This could provide the necessary conditions for a bullish breakout, but traders should remain cautious due to the ongoing volatility.
Impact of U.S. Election Results on Bitcoin and Bonk Coin
With the U.S. election results set to influence broader market trends, especially Bitcoin [BTC], there’s potential for short-term volatility to impact Bonk Coin as well. The uncertainty surrounding BTC’s price movement could spill over into the meme coin market, but if Bitcoin maintains its bullish momentum, it could provide some support to coins like BONK.
Looking ahead, AMBCrypto’s analysis suggests that Bonk Coin will likely encounter significant resistance at the $0.0000231 and $0.0000262 levels. These former range highs could play a pivotal role in determining whether BONK can extend its recent rally or face another pullback. The $0.0000230 zone, in particular, appears to be a critical level, with a potential reversal more likely than a breakout unless there is a surge in buying volume.
While Bonk Coin’s rebound from recent lows offers some hope, its future price action will depend on both broader market conditions and its ability to generate increased buying interest. Traders should watch the $0.0000227 resistance level closely, as breaking this barrier could signal a shift to a more bullish market structure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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