Solana-based meme coin BONK is having fun with a rise of over 18% at the moment, however the asset may very well be in bother if this promote sign passes.
BONK types TD consecutive promote sign on weekly chart
Analyst Ali explains: post In X, the identical indicators that instructed BONK’s current rally are as an alternative predicting a decline within the cryptocurrency. The indicator in query is the Tom DeMark (TD) Sequential, which is often used to pinpoint the anticipated highs and lows of an asset’s value.
This indicator provides such a reversal sign after 9 candlesticks of the identical sort observe the earlier high/trough of the asset. This 9 candle part known as “Setup”.
If the setup is accomplished with 9 crimson candles, the TD Sequential suggests a attainable purchase level, and the inexperienced candles counsel the asset could have encountered a ceiling.
Only in the near past, we accomplished the setup of a TD sequential on the weekly value chart of the meme coin BONK. Under is a chart shared by an analyst that illustrates this sample within the cryptocurrency.
Appears just like the sign has accomplished with inexperienced candles not too long ago | Supply: @ali_charts on X
As proven within the graph above, the weekly BONK value has accomplished the setup part of the TD Sequential with a inexperienced candle because the asset has skilled a pointy rise not too long ago.
Ali factors out that the identical indicator gave a purchase sign for memecoins just a few months in the past, which ultimately led to the present rally. To date, this asset has loved a return of greater than 8,400% throughout this operation.
Based mostly on the most recent TD Sequential promote sign, the analyst believes BONK may very well be headed for a correction interval that might final one to 4 weeks.
Canine-based cash have gained greater than 18% previously day
Over the weekend, BONK continued its current bullish momentum and pushed above $0.00001487, however Memecoin quickly seen a pointy correction and plummeted to $0.00000996.
Nonetheless, it seems that the bulls are attempting to reclaim the coin because it witnessed a fast restoration of 18% previously 24 hours and regained the $0.00001237 degree. The graph under exhibits the token’s efficiency over the previous month.
The value of the asset seems to have gone via a pointy rally on this interval | Supply: BONKUSD on TradingView
Nonetheless, it’s tough to say whether or not this new rally will final for fairly a while, as BONK continues to be fairly a methods away from absolutely reversing in direction of the highest.
And contemplating the promote sign on TD Sequential on the weekly chart, this rebound spike may simply be a useless cat bounce and BONK may fall from right here as an alternative.
At the moment, Meme Coin is up over 364% previously month and ranks third among the many high Meme Cash when it comes to market capitalization. In different phrases, it’s only smaller than Dogecoin (DOGE) and Shiba Inu (SHIB) when it comes to whole valuation.
Featured picture from Shutterstock.com, chart from TradingView.com
