BONK price has declined sharply since its all-time high on December 15, 2023.
Despite falling, BONK broke out above the short-term descending resistance line today.
BONK decreased after parabolic increase
Technical analysis from the daily timeframe shows that BONK price has increased rapidly since October. The upward movement led to a high of $0.0000350 on December 15. This amounted to an increase 20,000% in two months.
The price has declined since then, peaking at a low of $0.0000093 yesterday.
Technical analysts use Elliott Wave theory to identify recurring long-term price patterns and investor psychology, helping them determine the direction of trends.
The most likely wave count shows that BONK has completed a five-wave upward movement since the October low.
Traders use the RSI as a momentum indicator to evaluate whether the market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI is above 50 and sloping up, the bulls still have the advantage, but if the index is below 50 the opposite is true.
The daily RSI supports wave count as it has a bearish divergence created (green) near the top.
BONK Price Prediction: Has Meme Coin Bottomed?
Analyst Trading_Axe had strong words about BONK’s recent price drop. He criticized the crypto community for urging unipcsbot not to take profits when he made $12 million trading BONK (X account has now been suspended).
Since then, the price of BONK has decreased by 70%. He ended the tweet by saying:
“This is why I RECOMMEND not interacting with many people on CT, they don’t want what’s best for you. Some people even say that they deliberately put you on a pedestal to lose everything. Evil tactics.”
However, technical analysis on the 6-hour time frame suggests that a relief recovery is expected. This is due to price action, EW volume and RSI.
Price action shows the price broke above the descending resistance line in a rally ahead of the bullish divergence in the 6-hour RSI (green).
The number of waves indicates that this is wave B in an A-B-C corrective structure.
If the wave count is correct, BONK will rally 80% to the $0.0000220-$0.0000250 resistance level, created by the 0.5-0.618 Fib retracement levels. This will complete wave B.
Despite this bullish prediction, a drop below the descending resistance line will invalidate the possibility of a bounce. BONK could then drop another 70% to the nearest support at $0.0000036.
