Popular meme coin BONK has experienced a significant price increase of nearly 50% over the past week. However, indicators suggest that the market may be overheated and a price correction is imminent. The decline in the token's futures open interest while its price continues to rise suggests a decrease in new participants entering the market, potentially weakening the upward trend. Additionally, the significant increase in market volatility, as indicated by the widening Bollinger Bands, suggests that the current uptrend may not be sustained for long. The Relative Strength Indicator (RSI) also indicates that BONK is overbought, further supporting the possibility of a price drop. If a pullback occurs, the meme coin may retest resistance levels, potentially seeking support around $0.000015. On the other hand, a successful retest of resistance could result in a continuation of the upward trend and potentially reach a four-month high of $0.000044.
- Content Editor ( beincrypto.com )
- 2024-10-01
BONK Price Under Pressure as Bears Eye a Potential 40% Drop