BONK Soars 18%, But Analyst Warns Of Impending Correction
December 11 2023 - 1:00PM
NEWSBTC
Solana-based memecoin BONK has enjoyed a rally of more than 18%
today, but the asset may be in trouble if this sell signal is to go
by. BONK Has Formed A TD Sequential Sell Signal On Its Weekly Chart
As explained by analyst Ali in a post on X, the same indicator that
signaled the latest rally for BONK is now predicting a decline for
the cryptocurrency instead. The metric in question is the “Tom
Demark (TD) Sequential,” which is generally used for pinpointing
probable tops and bottoms in any asset’s price. The indicator gives
such a reversal signal after nine candles of the same type are
following a previous top/bottom in the asset. This nine-candle
phase is called the “setup.” Related Reading: 63.2% Of PEPE Holders
Now In Profit: How This Compares With DOGE, SHIB If the setup
completes with nine red candles, then the TD Sequential suggests a
likely buying point, while green candles imply the asset might have
encountered a top. A TD Sequential setup has been completed for
memecoin BONK on its weekly price chart just recently. Here is the
chart shared by the analyst that shows this pattern in the
cryptocurrency: Looks like the signal has completed with green
candles recently | Source: @ali_charts on X As displayed in the
above graph, the weekly BONK price has completed a TD Sequential
setup phase with green candles recently as the asset has been
enjoying a sharp rally. Ali notes that a few months ago, the same
indicator had presented a buy signal for the meme coin, which ended
up leading to the current rally. So far, the asset has enjoyed
profits of more than 8,400% during this run. The analyst thinks
based on the latest TD Sequential sell signal, BONK may be heading
towards a correction period that could last anywhere from one to
four weeks. The Dog-Based Coin Has Registered A Rise Of Over 18%
During The Past Day During the weekend, BONK continued its recent
bullish momentum and made a push above the $0.00001487 mark, but
the meme coin soon noticed a sharp correction as it plunged to
$0.00000996. The bulls appear to be back for the coin, though, as
it has seen a rapid 18% recovery in the last 24 hours, reclaiming
the $0.00001237 level. The below chart shows how the token has
performed during the past month. The price of the asset appears to
have gone through a sharp rally in this period | Source: BONKUSD on
TradingView BONK is still a decent distance from making a full
retrace towards its top, however, so it’s hard to say anything
about whether this fresh rally is going to last for any sizeable
period. Related Reading: Hold Your Horses: Bitcoin Could Fall Back
To Under $38,000, These Analysts Say And given the TD Sequential
sell signal in the weekly chart, it’s possible that this recovery
surge is just a dead-cat bounce, and BONK will be heading down from
here instead. At present, the meme coin is up more than 364% during
the past month and stands third on the top meme coins by market cap
list, meaning that it’s only smaller than Dogecoin (DOGE) and Shiba
Inu (SHIB) in total valuation. Featured image from
Shutterstock.com, charts from TradingView.com
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