A bounce to $0.00004 might be likely, but whether the market structure can shift bullishly would depend on capital inflowsfell by 59% in 30 days from 20 November to 20 December. This steady downtrend saw some sizeable selling volume on certain days, such as 9 December, whenThe daily RSI for BONK was at 44 and below the neutral 50, underlining bearish momentum. The OBV also made a series of lower highs and lower lows over the past month.
The recent drop forced the memecoin to retest the 78.6% Fibonacci retracement level at $0.0000264, but it did not close a daily session below it. Since hitting the local lows at $0.0000248 on Friday, the altcoin’s price has shot up by 39%. The $0.00004 zone had been a support, then flipped to resistance in recent weeks. It is expected that it will serve as a stern resistance once again. A daily session close above $0.0000394 would flip the daily market structure bullishly.The $0.00004 resistance zone identified on the daily chart had a sizeable concentration of liquidation levels around it, the 2-week lookback period liquidation heatmap showed.
AMBCrypto found that the liquidity to the south was relatively sparse as well. Therefore, a move to retest this resistance is highly likely in the coming days.The 24-hour liquidation heatmap pointed to a potential range formation between $0.0000322 and $0.000035. Hence, it is possible that the liquidity built up around $0.000035 in recent days could see a short-term bearish reversal.And yet, the magnetic zone around $0.00004 seemed much stronger.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinionAkashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis.