BONK price has been highly volatile recently, drawing traders' attention due to its rapid changes. Key technical indicators suggest BONK could either break through new resistance levels or face a possible correction.
The Relative Strength Index (RSI) for BONK has risen to 81.25 after a 22% price jump in the last 7 days, transitioning from oversold to overbought conditions quickly. An RSI above 70 usually indicates overbought conditions, suggesting a possible price correction.
Currently at 0.03, BONK's Chaikin Money Flow (CMF) has dropped significantly from nearly 0.30, indicating weakened buying pressure. This shift may suggest the recent price rally is losing momentum as traders move to other assets.
Three days ago, BONK's Exponential Moving Averages (EMA) lines formed a golden cross, leading to a 27% price surge. Although this signals an uptrend, the lines' close proximity indicates the trend is still in its early stages and hasn't established strong momentum yet.
If current trends continue, BONK could potentially break through key resistance levels, but both CMF and RSI indicate possible limits to these gains, hinting at a potential trend reversal. Failure to sustain the rally could see BONK retreating to lower price points.
