The popular altcoin BONK’s price has significantly fallen since its all-time high on December 15, 2023. Despite the decline, BONK has broken through a short-term descending resistance trend line today.
Massive Surge in BONK’s Value
Technical analysis on the daily timeframe shows that BONK’s price has been rising rapidly since October. The upward movement led to the cryptocurrency reaching $0.0000350 on December 15. This was equivalent to a 20,000% increase in two months. The price has since fallen, dropping to $0.0000093 yesterday. Technical analysts use the Elliott Wave theory to identify repeating long-term price patterns and investor psychology, which can help them determine the direction of a trend.
Analysts’ wave count indicates that BONK has completed a five-wave rising movement from its lowest levels in October. Investors use the Relative Strength Index (RSI) as a momentum indicator to assess whether a market is overbought or oversold and whether an asset should be accumulated or sold. If the RSI value is above 50 and the trend is upward, bulls are still at an advantage, but if the reading is below 50, the opposite is true.
BONK Price Analysis
The daily RSI is forming a downward trend near the peak, which could support the wave count. Crypto analyst Trading_Axe commented on the recent BONK decline, criticizing the crypto community for not taking profits when the BONK trading volume showed a $12 million increase.
However, technical analysis on the six-hour timeframe suggests an expected relief rally. This could be due to the price action EW count and RSI readings. The price action indicates that after a rise in the six-hour RSI, BONK has broken out from the descending resistance trend line. If the analysis holds true, BONK could see an 80% increase to the resistance created by the 0.5-0.618 Fib retracement levels at $0.0000220-$0.0000250.
