The post BONK rallies nearly 30%, but why the memecoin can turn bearish soon appeared on BitcoinEthereumNews.com.

BONK witnessed strong bullish momentum but reduced buying pressure Combined with the local resistance, the lack of demand could see a bearish reversal soon Bonk [BONK] has a bullish outlook and managed to push toward the local resistance level once again. The BONK and Bitcoin [BTC] bulls had strong upward momentum, and further gains appeared likely. Yet, BTC was at a local resistance level. BONK could reach a supply zone soon. A BONK technical analysis by AMBCrypto earlier this month predicting a 15% drop and a subsequent 30% rally proved right. What could come next for the meme coin? Will the rally halt after another 10% move higher? Source: BONK/USDT on TradingView In the past two months, BONK has traded within a range (purple) that extended from $0.0000286 to $0.0000136. The mid-range mark (dotted white) at $0.0000212 has also served as a support level. This formed a range within a range, and BONK saw a bounce from the mid-range level on the 13th of May. This came during the GME hype period, the token has performed well since then. Despite the 28.6% gains in the past six days, the CMF showed a negative reading of -0.11. This indicated significant capital outflow from the market. Hence, even though the RSI reflected bullish momentum with a reading of 61, it appeared that the selling pressure and the range high resistance could reject the meme token bulls. The liquidation heatmap highlighted the same range Source: Hyblock The one-month look-back period of the liquidation heatmap highlighted what the technical analysis already laid out. The $0.00002 and $0.00003 levels have the highest concentration of liquidity levels nearby. Realistic or not, here’s BONK’s market cap in BTC’s terms Therefore, it is likely that we see a move to $0.00003-$0.0000315 to collect this liquidity before a bearish…

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Filed under: News - @ May 20, 2024 4:14 am