BONK is facing mounting bearish pressure as technical indicators signal growing weakness in the market. After a brief attempt to stabilize, the token appears to be losing momentum dropping again toward the $0.00004002 for another test, with key metrics pointing to further downside. As BONK navigates these challenging conditions, speculations are on whether the meme coin can reclaim its footing or if deeper losses are inevitable. 

This analysis dives into BONK’s current market performance under bearish conditions, highlighting the technical indicators that signal potential weakness. Furthermore, we will assess the likelihood of a recovery or a continuation of BONK’s downward trajectory by analyzing critical support levels, market trends, and the broader outlook, 

Technical Indicators Signal Growing Weakness For BONK

On the 4-hour chart, BONK exhibits negative sentiment, trading below the 100-day Simple Moving Average (SMA) as it trends downward toward the $0.00004002 support level. A continued descent to this support suggests that selling pressure is intensifying, and if the support fails to hold, the asset could experience more declines.

Also, an analysis of the 4-hour chart reveals that the Relative Strength Index (RSI) has now declined to the 44% level following a previous attempt to rally, which peaked at 49% before losing strength. A declining RSI, particularly as it remains below the neutral 50% level, indicates that bearish momentum is building. If the RSI continues to dip, it could further validate the downtrend, potentially leading to more significant price drops as selling pressure intensifies.

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On the daily chart, the meme coin displays notable downward movement, highlighted by a bearish candlestick with a strong rejection wick that has emerged after a failed recovery attempt. The inability to sustain an upside direction implies a lack of buyer confidence and a prevailing negative sentiment in the market. As BONK aims at the $0.00004002 support level, the pressure from sellers could intensify, raising concerns about the possibility of a breakdown.

Finally, the 1-day RSI shows increasing negative pressure on the cryptocurrency, with the signal line dropping sharply from the overbought zone to 56%. This decline marks a shift in momentum, indicating that buying strength is weakening and selling pressure is rising. Should the RSI continue to fall, it could signal sustained pessimistic sentiment and declines for BONK.

Bounce Back Or Further Decline?

Two potential scenarios are likely as BONK faces bearish pressure: a bounce back or further decline. If the meme coin can hold the critical $0.00004002 support level and attract renewed buying interest, it could spark a recovery, possibly reversing the current downtrend and pushing the price to the $0.00006247 resistance range and beyond.

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However, if selling pressure persists and BONK fails to sustain the $0.00004002 support level, a deeper decline may follow, with the price potentially dropping to lower support zones, including $0.00002962, $0.00002320, and below.

Featured image from X, chart from Tradingview.com

Leading altcoin Ethereum (ETH) has experienced a notable price surge over the past 24 hours, breaking the $3,600 mark. As of this writing, ETH exchanges hands at $3,613, a level it last traded at in June. 

This rebound has been fueled by a massive trading volume exceeding $43 billion in the past 24 hours. This hints at a sustained rally toward the psychological $4,000 price mark.

Ethereum Price Surge Hints at Altcoin Season

ETH’s trading volume has totaled $43 billion over the past 24 hours. This surge in trading activity has propelled the coin’s value to a price last observed five months ago.

When an asset’s trading volume climbs alongside its price, it indicates strong market interest and confidence in the upward movement. This combination suggests that the price rally is backed by significant buying activity, making it more sustainable.

Therefore, ETH’s high trading volume reflects the uptick in market demand and broad participation. This reduces the likelihood of a sudden reversal.

Further, Ethereum’s recent surge suggests a potential shift toward the altcoin season. According to Blockchain Center’s Altcoin Season Index (ASI), the score now stands at 61 out of 100, nearing the 75-point threshold to signal the commencement of the highly-anticipated time.

Notably, some profit-taking activity is already underway due to this price surge. This is reflected in the coin’s positive exchange netflow volume. On Wednesday, 54,974 ETH valued above $199 million were sent to exchanges. 

The exchange netflow volume metric measures the difference between inflows into and outflows from exchanges over a specific period. When an asset’s netflow is positive, more coins are moving into exchanges than leaving, often signaling potential selling pressure as traders prepare to sell.

This increase in supply on exchanges can weigh on the price if demand does not match the heightened availability.

ETH Price Prediction: Rally Toward Year-To-Date High

Despite this, the overall bullish sentiment in the Ethereum market remains strong, suggesting that the uptrend may persist. The setup of ETH’s Parabolic Stop and Reverse (SAR) indicator, as assessed on a daily chart, confirms this bullish outlook.

This indicator identifies potential trend reversals and provides dynamic support and resistance levels. It places dots above or below the price chart: dots below the price suggest a bullish trend, while the dots above indicate a bearish trend. 

As in ETH’s case, when the SAR rests below the price, it signals upward momentum and suggests a bullish trend. If the bullish trend persists, the ETH coin price may breach resistance at $3,669 and climb toward its year-to-date high of $4,093.

On the other hand, a decline in bullish pressure will occasion the ETH coin price to fall toward support formed at $3,336. 

As November ends and December 2024 begins, investors are likely to shift their focus toward portfolio rebalancing or exploring new altcoin opportunities. The Decentralized Physical Infrastructure Network (DePIN) narrative is gaining attention, making it a key sector to watch. Here are some top DePIN altcoins to keep an eye on.

In this analysis, BeInCrypto discusses five top DePIN altcoins to watch next month, highlighting why these cryptos may garner a lot of attention in the market. They include Filecoin (FIL), Arweave (AR), Grass (GRASS), io.net (IO), and NetMind Token (NMT).

Filecoin (FIL)

Filecoin, which has a market capitalization of $3.44 billion, tops the list of DePIN altcoins to watch in December. For an altcoin that lost a chunk of its value during the second and third quarters, Filecoin has shown strength within the last 30 days.

Over this mentioned period, the price has increased by 56.22%. However, it is still largely down from its all-time high, suggesting that it still has more room to grow. 

From a technical point of view, the Awesome Oscillator (AO), which measures momentum, has continued to remain in the positive region. Typically, when the AO is negative, momentum is bearish.

But when it is positive, it is bullish, which is the case with FIL. If this remains the case, the altcoin’s price might climb to $6.50 within the first few days in December. However, if momentum turns bearish, that may not happen, and Filecoin could drop to $4.96.

Arweave (AR)

Second on the list of the top DePIN coins to watch is Arweave, a project focused on a decentralized storage network. Over the last seven days, AR’s price has increased by 20.98%, making it one of the best-performing altcoins in the top 100.

At press time, the token’s price is $21.13. The daily chart shows that the altcoin hit this price due to the formation of an inverse head-and-shoulders pattern.

This pattern is a bearish to bullish reversal that was validated after AR bottomed at $133. However, the token currently faces resistance at $22.05 but could help AR breach this obstacle. 

Should this happen, the Arweave’s price could climb to $24.57 in the short term. If buying pressure increases, this might be higher. However, if bears have the upper hand, the price could decrease to $18.96.

Grass (GRASS)

In October, BeInCrypto named GRASS one of the top DePIN altcoins to watch in November. Interestingly, the recently launched project did not disappoint, climbing by 300% within the last 30 days.

Currently, GRASS’ price is $3.48 and has been hitting lower highs (LH) on the 4-hour chart. Due to this price movement, the altcoin’s value could likely hit a new all-time high in December, surpassing $3.90 in the process.

If that happens, then it might not be out of place to see GRASS at $5. On the flip side, if the altcoin loses this bullish momentum, this prediction might not come to pass. Instead, it could decrease to $2.81.

io.net (IO)

Another DePIN altcoin to watch in December is io.net, which prides itself on being the world’s largest decentralized AI computing network. Within the last 30 days, IO’s price has increased by 65.13% while trading at $2.93.

On the daily chart, IO’s price has risen above the 20-day Exponential Moving Average (EMA). This position means that the trend around the altcoin is bullish, and the price might continue to climb.

If the token continues to hold this position, its value could rise above $4 in December. On the other hand, if interest in IO drops, the prediction might be invalidated, and the token could decline below $2.

NetMind Token (NMT)

The top DePIN altcoins to watch will be incomplete without mentioning NetMind Token, which is a token built on the BNB Chain. Today, NMT’s price is $3.76, while its trading volume has increased by 350% in the last 24 hours.

This surge in volume indicates rising interest in the token. NMOR’s value has increased by 76.10% since yesterday. Between September 25 and November 5, NetMind Token’s price dropped from $3.89 to $1.29.

But since then, bulls have been pushing the value higher. In December, the altcoin’s price is likely to go higher. If that is the case, the cryptocurrency could climb above $5.  

But if profit-taking rises, this might not happen. Instead, NMT’s price could drop to $2.72.