2024-5-21 17:00 |
Bonk’s price made a mark this week by capitalizing on the broader market’s bullishness, inching closer to the all-time high.
While the investors are pushing for a rise, they might encounter some resistance if the price continues to rise.
Bonk Investors Bet on GainsBonk’s price is observing the impact of the rising market’s growth and BONK holders’ optimism. The latter is evident in the funding rate of the meme coin, which has hit a two-and-a-half-month high.
The funding rate is a periodic payment made between traders in a futures market to keep the price of the futures contract close to the underlying asset’s price. Generally, a positive funding rate suggests the futures market is observing a dominance of long contracts. A negative rate, on the other hand, suggests that short contracts are the traders’ choice.
Presently, the high funding rate is proof that BONK holders are betting on a price rise. How much this would reflect in the asset is another matter.
BONK Funding Rate. Source: CoinglassThis is because the Relative Strength Index (RSI) is at the cusp of entering the overbought zone. The RSI is a technical analysis tool that assesses the magnitude of recent price changes to evaluate overbought or oversold conditions in a market.
RSI values range from 0 to 100, with readings above 70 indicating overbought conditions and below 30 indicating oversold conditions.
There has only been one other instance of the RSI entering the overbought zone in the past. This was back in March when Bonk’s price hit an all-time high of $0.00004800 but closed at $0.00003769.
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BONK RSI. Source: TradingViewThis was followed by corrections as the market cooled down after the rise.
BONK Price Prediction: Rising a Bit MoreBonk’s price pushed through the resistance at $0.00002840 and is close to breaching $0.00003392. This barrier has been difficult to break in the past, but a rise above it could propel BONK to $0.00003769.
Bonk last closed at this point when it noted intra-day highs of $0.00004800. Looking at the aforementioned factors, a rise to this point is possible, but this is as far as the rally goes.
Since RSI is already nearly overbought, the increase will be stopped before BONK goes any further.
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Bonk Price Analysis. Source: TradingViewHowever, if the breach of $0.00003392 fails, Bonk’s price could fall back to $0.00002840. Losing this support could wipe out half the recent gains, sending the meme coin to $0.0000 2500 and invalidating the bullish thesis.
The post Bonk Price Could Hit a Wall Before Setting a New All-Time High appeared first on BeInCrypto.
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