BONK Price Shoots 20%, Traders Are Preparing For Another Mega-Rally

Memecoin Bonk Inu (BONK) is once again grabbing investors’ attention as the BONK price jumped by another 20% in the last 24 hours and currently trading at $0.00001572. 

Buyers Staging A Comeback

The BONK price faces significant downward pressure, breaching the 50 EMA in the 4H chart and declining rapidly. This pullback impacts the market value and signals a potential death cross in the 4H chart.

The price of Bonk Inu experienced a significant decline of 64% from December 14 to 28, resembling a correction often associated with bear markets that typically span over a few years. This typically comes after the BONK listing on some popular exchanges last week. Given the inherent volatility of meme coins, there are indications that BONK is approaching a potential reversal.

Sellers intensify the pullback, pushing the price below the $0.000015 psychological level, testing the 200 EMA and signaling a potential death cross. Despite this week’s sharp decline, the recent bullish trend provides optimism for the Bonk price, suggesting a potential trend continuation amid positive market sentiments and a growing community in the coming weeks.

At present, buyers are staging a comeback, finding support at the 200 EMA in the 4-hour timeframe and re-emerging above the psychological threshold of $0.000015. Nevertheless, the recovery effort faces challenges as the buyers have relinquished the 61.80% Fibonacci level, turning the previously supportive level into a resistance, which may impede the recovery attempt.

BONK Price Gearing Up for Rally

A definitive shift in BONK’s price dynamics would be signaled by a decisive transition of the $0.0000174 barrier into a supportive level, confirming the presence of bullish forces striving for a reversal. In such a scenario, Bonk Inu’s price may prompt a rapid 31% upward movement toward the subsequent critical resistance level at $0.0000228.

This potential uptrend could result in a substantial 55% gain for BONK holders compared to its current trading value of $0.0000152. For investors seeking a more cautious approach, a confirmed flip of the $0.0000174 level into a support base could offer an opportune entry point, presenting the potential for a 31% gain.

Despite the optimistic outlook, entering trades before the successful transition of the key level at $0.0000174 carries inherent risks. Heavy resistance at this level could lead to corrections and a continuation of the existing downtrend.

However, the bullish scenario becomes invalidated if Bonk Inu’s price breaches the $0.0000129 support level and transforms it into a resistance level, establishing a lower low. In such circumstances, BONK might experience a 28% decline, targeting the subsequent support level at $0.00000925.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.