breakout or correction within a pennant?
The post breakout or correction within a pennant? appeared on BitcoinEthereumNews.com. Bonk is pressing into a multi-layered resistance zone. Without a breakout, price risks a pullback toward the lower boundary of its pennant structure, in line with the 0.618 Fibonacci and value area low. Bonk (BONK) is trading at a critical resistance region, one that is stacked with multiple technical confluences. The current price zone includes the point of control, value area high, high time frame resistance, and the upper dynamic trendline of a potential larger pennant structure. With price tightening and momentum slowing, Bonk faces a pivotal moment. A breakout would mark a shift in structure, but failure to do so could trigger a healthy correction back toward support. Key technical points Resistance Confluence: Price is testing the POC, value area high, high time frame resistance, and dynamic pennant resistance. Support at 0.618 Fibonacci: In confluence with value area low and pennant base. Structure at Crossroads: A breakout shifts structure bullish; rejection maintains equilibrium inside the pennant. BONKUSDT (1D) Chart, Source: TradingView Bonk’s recent rally has brought price right into a cluster of resistance that must be overcome for bullish continuation. This region is significant due to its multi-factor alignment: the point of control, value area high, and a high time frame structural resistance all intersect here. Additionally, price is pressing into the upper boundary of a developing pennant, a formation that typically precedes larger directional moves. From a technical perspective, this confluence creates a clear decision zone. If Bonk breaks above the current level with strong volume and sustained candle closures, the pennant will confirm a bullish breakout, shifting structure and setting the stage for a sequence of higher highs and higher lows. However, in the absence of such confirmation, the current setup leans toward a short-term corrective move. The most likely destination for such a pullback is the…
The post breakout or correction within a pennant? appeared on BitcoinEthereumNews.com.
Bonk is pressing into a multi-layered resistance zone. Without a breakout, price risks a pullback toward the lower boundary of its pennant structure, in line with the 0.618 Fibonacci and value area low. Bonk (BONK) is trading at a critical resistance region, one that is stacked with multiple technical confluences. The current price zone includes the point of control, value area high, high time frame resistance, and the upper dynamic trendline of a potential larger pennant structure. With price tightening and momentum slowing, Bonk faces a pivotal moment. A breakout would mark a shift in structure, but failure to do so could trigger a healthy correction back toward support. Key technical points Resistance Confluence: Price is testing the POC, value area high, high time frame resistance, and dynamic pennant resistance. Support at 0.618 Fibonacci: In confluence with value area low and pennant base. Structure at Crossroads: A breakout shifts structure bullish; rejection maintains equilibrium inside the pennant. BONKUSDT (1D) Chart, Source: TradingView Bonk’s recent rally has brought price right into a cluster of resistance that must be overcome for bullish continuation. This region is significant due to its multi-factor alignment: the point of control, value area high, and a high time frame structural resistance all intersect here. Additionally, price is pressing into the upper boundary of a developing pennant, a formation that typically precedes larger directional moves. From a technical perspective, this confluence creates a clear decision zone. If Bonk breaks above the current level with strong volume and sustained candle closures, the pennant will confirm a bullish breakout, shifting structure and setting the stage for a sequence of higher highs and higher lows. However, in the absence of such confirmation, the current setup leans toward a short-term corrective move. The most likely destination for such a pullback is the…
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