The price of Bonk ($BONK) is at a critical juncture as it holds onto trendline support, despite showing signs of bearish divergence as highlighted by CryptoBusy, a top analyst. Investors are closely watching for a potential bounce from the white trendline or a breakdown from this key support level.
The chart for BONK/USDT on the 4-hour timeframe reveals significant support and resistance levels, shedding light on the cryptocurrency’s price movements and future potential.
The primary support level to watch is $0.00002578. This level has been tested multiple times, reinforcing its importance as a strong base for price rebounds. Additionally, the ascending trendline support, marked with upward yellow arrows, acts as dynamic support. The price has consistently bounced off this trendline, suggesting a continued upward momentum as long as it holds.
On the resistance front, $0.00003200 is a critical level. The price has approached this level several times but faced rejection, indicating a significant barrier to upward movement. The next resistance level is $0.00003400, representing a recent high. Breaking this level would signal a strong bullish trend.
Navigating Resistance: Will BONK and PEPE Break Above Their Resistance Levels?Examining the price movements, a potential double top formation is evident around the $0.00003200 level. This pattern is typically a bearish signal. The price has formed two peaks at this level and subsequently retraced. Despite this, the price maintains its position above the ascending trendline support, indicating continued upward momentum if this trendline remains intact.
The support levels at $0.00002578 and the ascending trendline are crucial. Holding above these supports could provide a foundation for further upward movement. Conversely, the immediate resistance at $0.00003200 and the subsequent level at $0.00003400 are critical barriers. Overcoming these levels would likely indicate a resumption of the bullish trend.
However, the double top formation near $0.00003200 suggests caution. If the price fails to break above this resistance and breaches the support levels, it could lead to a bearish reversal. As of the latest data, the live Bonk price at press time stands at $0.000028, with a 24-hour trading volume of $249,670,222. Bonk is down 0.95% in the last 24 hours.
The 1-day RSI reads 54.46, indicating that Bonk is not currently in overbought or oversold territory. However, it may be approaching one of these levels soon. Additionally, the 1-day MACD trading above the signal line suggests some bullish momentum building in the stock.
