Technical indicators paint a promising picture for the price of the popular memecoin Bonk (BONK). However, the real state of affairs on the market suggests that it will be difficult to start a rally
Bonk Bulls Gain Strength
The market is starting to take more interest in the BONK memecoin. This is indicated by the moving average convergence/divergence indicator (MACD) – at the time of writing, the MACD line (blue) is trying to cross the signal line (orange) from the bottom up.
BONK Moving Average Convergence/Divergence. Source: TradingView
This signal is called a “bullish crossover” and indicates a possible change in momentum from bearish to bullish and the beginning of a rally. The crossover suggests that the short-term moving average is rising faster than the long-term one. Therefore, traders perceive this pattern as a signal to buy.
In addition, the Parabolic Stop and Reverse (SAR) indicator points for BONK have been below the price since August 8th. This indicator tracks trends in the asset’s price dynamics and identifies potential reversal points. When the SAR dots are below the price, the market is in an uptrend and the Parabolic SAR acts as a support level.
Parabolic Stop and Reverse BONK. Source: TradingView
This technical picture is another positive signal for traders. It hints at a possible price increase, so market players are actively buying up cryptocurrency or entering long positions. Interesting fact: out of 1.7 million memecoins launched on Pump.fun, only 15 were profitable. How this happened and what is happening with the failed meme tokens now.
Price Forecast: Rally to Start Will Be Difficult!
The indicators described above paint a bullish picture for BONK, but the current demand for the memecoin may not be enough to trigger a full-fledged rally.
Thus, the relative strength index (RSI) remains below the neutral line at 40.80. This indicator measures overbought and oversold market conditions. Its current values indicate low buying pressure compared to seller activity.
BONK Price Analysis. Source: TradingView
In addition, the Chaikin Money Flow (CMF) index for it remains negative. This suggests that the memecoin market is currently not liquid enough. Under such conditions, potential price growth seems difficult. However, If buyer demand remains low, the price risks falling to $0.000015. However, in a favorable scenario, the memecoin rate, on the contrary, may rise to $0.000022.
The post Will Bonk (BONK) Bulls Spark a Rally Anytime Soon? first appeared on The VR Soldier.
