BONK, the altcoin with the hottest start to any year ever, is hitting profit-taking at the $0.000026 level. Following a massive rally from $0.000011 on June 22, BONK’s bullish trend is set to undergo a crucial test. Technical indicators have come together to suggest a likely pullback. Immediate support levels to watch are $0.000020 and the 20-day exponential moving average (EMA) at $0.000017. Whether bulls should defend these levels to maintain bullish outlooks. If they’re able to succeed, they’ll be able to pump the entire price up to their desired goal of $0.000041.
BONK continued its ascent after it cleared all of the moving averages on Friday, indicating that buyers were back in control. The recent break back below the 20-EMA on the 4-hour chart reveals that near-term longs are taking profits. The relative strength index (RSI) pictured above is still strong, showing healthy positive momentum. The short-term price action will hinge on buyers returning to provide support just below the psychological barrier of $0.000020.
If the price bounces back from $0.000020, buyers will surely try to shove the BONK/USDT pair past $0.000024. If bulls manage a breakout above $0.000026, they would complete a double bottom pattern. This may lead the way for SHIB to rally towards $0.000041. If the duo loses the $0.000020 support, it might further descend to 50-SMA. Indeed, it is possible it could fall as low as the 50% Fibonacci retracement level at $0.000020.
If the price breaks below the 20-day EMA, the BONK/USDT pair may continue to languish in the $0.000011 to $0.000026 range. This limitation may be in place for years to come. On the downside, the 20-day EMA at $0.000017 is the key support level to watch. If the price slips under $0.000020, the BONK/USDT could drop to the 50-SMA. Bulls need to avoid this situation to keep the bullish momentum going.
