The BONK worth elevated significantly in February, breaking out from diagonal and horizontal resistance ranges.
Will the worth maintain this enhance, or was the motion only a reduction rally? Let’s discover out.
BONK Breaks Out From Resistance
The technical evaluation of the every day time-frame exhibits the BONK worth broke out from a descending resistance trend line on February 7. Earlier than the breakout, the development line had existed for 55 days.
Extra particularly, the development line had existed because the all-time excessive on December 15, 2023. In the present day, BONK reached a high of $0.000014 before falling slightly.
The every day Relative Power Index (RSI) offers a bullish studying. Merchants make the most of the RSI as a momentum indicator to evaluate whether or not a market is overbought or oversold and whether or not to build up or promote an asset.
If the RSI studying is above 50 and the development is upward, bulls nonetheless have a bonus, but when the studying is under 50, the alternative is true. The indicator exceeded 50 as soon as the worth broke out, legitimizing the breakout.
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BONK Worth Prediction: Will the Breakout Be Sustained?
The six-hour chart offers a extra undetermined development than the bullish every day time-frame readings. That is due to conflicting readings from the worth motion and the Relative Power Index (RSI).
The value motion exhibits that BONK broke out from a horizontal and Fib resistance at $0.000014.
Nonetheless, the six-hour RSI exhibits a pronounced bearish divergence (inexperienced). Such divergences happen when a momentum lower accompanies a worth enhance. They usually result in bearish development reversals.
So, whether or not the BONK worth bounces or closes below the $0.000014 area can decide the longer term development’s route.
A profitable bounce can catalyze an 18% BONK increase to the next resistance at $0.000016, whereas a breakdown could cause a 14% drop to the closest help at $0.000012.
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