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.<\/p>\n
As explained by analyst Ali in a post<\/a> 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 \u201cTom Demark (TD) Sequential<\/a>,\u201d which is generally used for pinpointing probable tops and bottoms in any asset\u2019s price.<\/p>\n 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 \u201csetup.\u201d<\/p>\n 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.<\/p>\n 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:<\/p>\n\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n During the weekend, BONK continued its recent bullish momentum<\/a> and made a push above the $0.00001487 mark, but the meme coin soon noticed a sharp correction as it plunged to $0.00000996.<\/p>\n 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.<\/p>\n\n BONK is still a decent distance from making a full retrace towards its top, however, so it\u2019s hard to say anything about whether this fresh rally is going to last for any sizeable period.<\/p>\n And given the TD Sequential sell signal in the weekly chart, it\u2019s possible that this recovery surge is just a dead-cat bounce, and BONK will be heading down from here instead.<\/p>\n 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\u2019s only smaller than Dogecoin (DOGE)<\/a> and Shiba Inu (SHIB) in total valuation.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n 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.<\/p>\n As explained by analyst Ali in a post<\/a> 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 \u201cTom Demark (TD) Sequential<\/a>,\u201d which is generally used for pinpointing probable tops and bottoms in any asset\u2019s price.<\/p>\n 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 \u201csetup.\u201d<\/p>\n 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.<\/p>\n 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:<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\nThe Dog-Based Coin Has Registered A Rise Of Over 18% During The Past Day<\/h2>\n
BONK Has Formed A TD Sequential Sell Signal On Its Weekly Chart<\/h2>\n
The Dog-Based Coin Has Registered A Rise Of Over 18% During The Past Day<\/h2>\n