The price increase of the recently popular meme coin project Bonk was something close to a fairy tale. But according to Crypto analyst Arman Shirinyan, this is about to end. According to the latest market data, BONK stands at a critical juncture. The BONK chart shows the potential for a meteoric rise and an equally rapid decline. On the other hand, Ethereum is poised to make a comeback, the analyst says.
Have we reached the end of the fairy tale for BONK?
BONK exhibited a significant price increase reminiscent of the dramatic rises we have witnessed in other meme coins. A series of large bullish candlesticks, investor enthusiasm and speculative trading have propelled BONK to impressive heights. cryptokoin.comAs you follow from , meme coin witnessed a period of rapid price increase. However, the chart also reveals the beginnings of a descending pattern. Red candles indicate a sale and the possible end of the BONK fairy tale.
An important pattern to look out for is the “shooting star” candle, which is often considered a reversal indicator. This type of candlestick has a small body and a long upper wick. This indicates that buyers pushed the price up, but sellers managed to push the price down to make a close close to the open. Such a formation is evident on the BONK chart. This likely signals the end of the bullish momentum.
Another important element seen on the chart is high volatility with wide price fluctuations, indicating a tug of war between buyers and sellers. Moving Averages (MAs) are starting to flatten out. This shows that the strong upward trend that characterized previous market movements has disappeared. Currently, the Relative Strength Index (RSI) is trending towards the middle line. This shows that the meme coin has lost the overbought status it had during the peak of its rally.
Meme coin hype cannot last!
BONK, like its predecessor Shiba Inu, is a highly speculative asset. Apart from its role in the meme coin world, it has almost no primary use. It has seen an active burn thanks to BonkBot, a Telegram bot designed for trading such speculative tokens. This helped maintain some scarcity in the market.
BONK’s future seems to be following the path previously taken by the Shiba Inu. A hype-driven boom is followed by a significant correction cycle as the market sobers up from its speculative frenzy. BONK’s journey was nothing short of a fairy tale. Now, that magic is disappearing. So that leaves investors with yet another dog-themed asset with no real use case.
Ethereum continues to struggle, strong return possible!
On the other hand, the eternal struggle for dominance between Ethereum and Bitcoin continues. Recent market movements show that Ethereum is not only alive, but is returning with renewed vigor. On the ETH/BTC chart, we witness Ethereum taking a step back against Bitcoin’s dominance. The leading altcoin is leaving behind a period in which it underperformed compared to Bitcoin. The chart reveals that Ethereum’s price has stabilized and is trying to reverse. The downward pressure that has characterized its performance in previous weeks is showing signs of abating, with candlestick patterns starting to show it is fighting back.
One of the most important observations is that red candles are getting shorter and green candles are getting shorter. This indicates buying interest at these levels. This is really important. Because it happens when the ETH/BTC pair is testing an important support zone. It also suggests that Ethereum could find a solid basis for a potential comeback against Bitcoin. Current sentiment towards Ethereum is admittedly weak. Additionally, the majority of traders maintain a cautious stance. This caution stems from recent market turmoil and ongoing discussions about Ethereum’s long-term potential and challenges. However, the market is known for its contrarian tendencies, and it is precisely such periods of negativity that can set the stage for a strong recovery.
The next few weeks or days will be critical for Ethereum. It will test the resolve of both his supporters and opponents. If Ethereum maintains its current levels and builds upon them, a reversal in price action is possible. This will be a sign that Ethereum is not only alive, but ready to rally against Bitcoin.
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