$BONK up 19% in 24 hours: Here’s why a pullback could be next - AMBCrypto Analytics
Bonk (BONK) experienced a significant drop below a key support level last week, losing 15% in just three days. After reaching a local low on November 4th, the meme coin showed notable recovery, surging by 32.2% in the last two days. This sharp rebound came after BONK tested the 78.6% Fibonacci retracement level, a crucial support zone at $0.0000174, offering a strong bullish reaction.
Despite this recovery, BONK’s market structure remains bearish, with a daily close above $0.0000227 needed to confirm a shift to a bullish trend. The On-Balance Volume (OBV) continues its downtrend, signaling that more buying volume is required to sustain momentum. On a positive note, the Relative Strength Index (RSI) has moved above the neutral 50 mark, hinting at a potential momentum shift toward the buyers.
Short-term volatility, influenced by factors like U.S. election results and Bitcoin’s price action, could impact Bonk's trajectory. However, Bitcoin's bullish momentum may provide support for BONK as it seeks to break past its recent resistance levels.