BONK Inu (BONK) Shows Signs of Renewed Strength as Bullish Momentum Begins to Build

After a brief pullback, BONK is showing signs of renewed strength as bullish momentum begins to build. The recent price action indicates that bulls have regained control

After a brief period of decline, bullish momentum is beginning to build for BONK, pushing the token out of its recent slump and signaling a potential shift in market sentiment. As the dust settles, traders are now keeping a close eye on BONK’s price action, speculating on its next targets and anticipating whether the token will continue its ascent or encounter resistance.

In this article, we’ll delve into a technical analysis of BONK’s recent price movements, examining key indicators and assessing the strength of the bullish trend. By considering both technical and market factors, we’ll attempt to gauge the likelihood of a breakout and identify potential upside targets for the meme coin.

Technical Indicators: Bullish Strength Emerges

On the 4-hour chart, a recent price rebound and movement above the $0.00001792 resistance level indicate a bullish trend for BONK. The meme coin is trading above the 100-day Simple Moving Average (SMA) and seems to be encountering strong momentum, with a present focus on moving toward the $0.00002962 level.

An analysis of the 4-hour Relative Strength Index (RSI) suggests that bulls may be preparing for a return. While the RSI has decreased to 59% from the overbought zone, it remains above the 50% threshold, indicating the presence of sustained bullish momentum. This positioning suggests that while there has been some cooling off, the market could still have the potential for upward movement as long as the RSI remains above this key level.

Moreover, on the daily chart, positive momentum is evident in the presence of a rejection wick on the current daily candlestick. Despite being below the 100-day SMA, this rejection wick indicates that buyers are stepping in and pushing the price higher, causing the selling pressure to diminish.

Finally, a close examination of the 1-day RSI formation suggests that BONK may fully resume its upward movement as the indicator’s signal line has climbed above the 50% threshold and is currently positioned at 53%.

Potential Upside Targets: Where Could BONK Be Headed Next?

As BONK showcases renewed bullish strength, crucial resistance levels to watch include the $0.00002320 mark, where previous price action has encountered obstacles. If BONK can break through this level, it could pave the way for further gains, potentially reaching the next target of around $0.00002962 and beyond.

Conversely, if BONK faces significant resistance at $0.00002320, the price may consolidate or attempt to test the $0.00001792 support level. A break below this range accompanied by strong volume could signal a continuation of the downward trend, possibly targeting the support level at $0.00000942.

At the time of writing, BONK was trading at about $0.00001803, showing a 2.33% decline over the last 24 hours. The cryptocurrency’s market capitalization stood at roughly $1.2 billion, while trading volume exceeded $128 million, marking decreases of 2.32% and 23.11%, respectively.

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