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• The demand behind BONK has fallen regardless of the short-term rally.
• The opportunity of a spread formation was current, and BONK’s response on the native resistance can be illuminating.

Bonk [BONK] costs bounced 52% previously 24 hours. This got here after a dip right into a zone of demand that AMBCrypto had reported as important a few days in the past.

Nevertheless, the latest positive aspects have introduced the meme coin to a resistance zone from the ninth of December.

The value motion of the previous week steered two prospects for BONK. The robust upward momentum pointed towards the probability of a breakout previous the native highs.

But, proof from technical evaluation steered that bulls weren’t as robust as they appeared. May we see the entire earlier day’s positive aspects worn out quickly?

The decrease timeframe consolidation zone was defended firmly

Supply: BONK/USDT on TradingView

The world marked in cyan represented a consolidation area on the four-hour chart that had been examined a number of instances previously few days. The latest retest noticed BONK bounce by near 52% inside a day.

Nevertheless, the On-Steadiness Quantity (OBV) fashioned a decrease excessive in comparison with ninth December. This indicated that the latest purchase was not spurred by real demand.

The RSI additionally dipped on the 12-hour chart to sign weakened bullish momentum.

A breakout previous the $0.0000149 degree and a retest would supply a shopping for alternative focusing on the 61.8% Fibonacci extension degree at $0.0000219.

Then again, it was additionally attainable that BONK would face rejection at $0.0000149 and fall to the the native lows at $0.00000995.

The elevated Open Curiosity helped clarify the surge in costs

Supply: Coinglass

The OBV offers with the shopping for and promoting quantity per buying and selling session within the spot market.

In the meantime, the information from Coinglass confirmed that the elevated Open Curiosity of the previous 24 hours got here alongside a speedy improve in costs.

Learn Bonk’s [BONK] Worth Prediction 2023-24

The inference was that the rally was not pushed by shopping for stress however by OI. Such a rally can final solely a short time and is extra more likely to retrace.

Subsequently, regardless of the robust bullish momentum, it was anticipated that BONK would descend towards $0.00000995 as soon as extra.