This article is available in Spanish.
After a brief withdrawal, THUMP is showing signs of renewed strength as bullish momentum begins to build. The recent price action indicates that the bulls have regained control, bringing the token out of its recent slump.
As the market changes, traders are now looking at a possible upside breakout, with BONK’s next targets becoming increasingly clear. Could this be the start of a new rally, or will the bears try to regain their position? dominance once more?
In this article, we provide an in-depth analysis of BONK’s recent price action following the pullback and examine the renewed bullish strength that has emerged. By examining key technical indicators, we will assess whether this shift in momentum signals the potential for further upside and a breakout, or whether the token is likely to encounter resistance in the short term.
Technical Indicators: Signs of Bullish Momentum Building
The price of BONK recently turned bullish on the 4-hour chart, recovering and crossing above the resistance level at $0.00001792. The meme coin is trading above the 100-day Simple Moving Average (SMA) and showing strong momentum, with a current focus on moving towards the $0.00002962 level.
An analysis of the 4-hour Relative Strength Index (RSI) indicates that bulls are poised to make a comeback. Although the RSI has fallen to 59% from the overbought zone, it remains above the 50% threshold, indicating that bullish momentum is still present. This positioning indicates that while there has been some cooling, the market retains the potential for upside as long as the RSI remains above this key level.
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Also on the daily chart, BONK shows positive momentum, evidenced by a rejection wick on the current daily candlestick. Despite being below the 100-day SMA, this rejection fuse shows buyers stepping in and pushing the price higher, easing selling pressure.
Finally, a closer look at the 1-day RSI formation on the 1-day chart suggests that BONK could fully resume its upward move now that the indicator’s signal line has climbed above the 50% threshold and currently stands at 53%.
Potential Upside Targets: Where Could BONK Go Next?
With BONK showing renewed bullish strength, key resistance levels to watch include the $0.00002320 mark, where previous price action hit obstacles. If BONK can break through this level, it could pave the way for further developments profitspotentially reaching the next target of approximately $0.00002962 and higher.
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Conversely, if BONK faces significant resistance at $0.00002320, the price may consolidate or attempt to test the support level at $0.00001792. A break below this range, accompanied by strong volume, could signal a continuation of the downtrend, with the support level possibly at $0.00000942.
BONK was trading at around $0.00001803 and showed a decline of 2.33% in the last 24 hours. The cryptocurrencies market Capitalization amounted to approximately $1.2 billion, while trading volume exceeded $128 million, representing a decline of 2.32% and 23.11% respectively.
Featured image from LinkedIn, chart from Tradingview.com