BONK Falls After Parabolic Increase
The BONK price has experienced a significant decrease since reaching its all-time high on December 15, 2023. However, today it broke out from a short-term descending resistance trend line.
The technical analysis of the daily time frame reveals that the BONK price has been rising rapidly since October, resulting in a peak of $0.0000350 in December. This represents a staggering 20,000% increase in just two months. Since then, the price has been declining and hit a low of $0.0000093 yesterday.
Using the Elliott Wave theory, technical analysts can identify recurring long-term price patterns and investor psychology to determine market trends. The most likely wave count suggests that BONK has completed a five-wave upward movement since its October lows.
BONK Price Prediction: Has the Meme Coin Bottomed?
A cryptocurrency trader named Trading_Axe expressed strong criticism of the recent drop in BONK’s price. He highlighted how the crypto community discouraged unipcsbot from taking profits when they were up $12 million on a BONK trade (the account is now suspended). Since then, the BONK price has plummeted by 70%.
However, the technical analysis of the six-hour time frame indicates that a relief rally may be on the horizon. The price action, EW count, and RSI readings suggest this possibility. The price broke out from a descending resistance trend line following a bullish divergence in the six-hour RSI.
If the wave count is accurate, BONK could see an 80% increase to the 0.0000220-$0.0000250 resistance level before completing the corrective structure. However, if the price falls below the descending resistance trend line, it could decline by another 70% to the closest support at $0.0000036.
Hot Take: BONK’s Volatility Continues
The recent price movements of BONK have demonstrated extreme volatility, with a parabolic increase followed by a significant decrease. While there are indications of a potential relief rally based on technical analysis, there is also a risk of further decline. The behavior of the crypto community and traders during this period has been subject to criticism, highlighting the importance of cautious decision-making and avoiding manipulative tactics. As BONK continues to navigate its market dynamics, investors should closely monitor price patterns and indicators to make informed trading decisions.
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