Hello and welcome to another updated article about BON. In yesterday's article, we saw a promising reversal candle, hinting that the low might be in. For further confirmation, we need to see a break of the trend line, which is currently in progress. BON is attempting a breakout, but a pullback is likely before any significant move.
Recent Performance
Since yesterday's low, BON has surged by around 26-27%. This price action aligns with the five-wave move up from the April low, making it one of the few coins that formed an impulse from that low.
The correction we've been monitoring seems to have unfolded into the support region, with the price reacting to the 61.8% retracement at $2.69—a crucial Fibonacci and structural support level. From here, a third wave could potentially start.
Key Indicators and Potential Pullbacks
While the wave count is technically complete, it doesn't guarantee that the low is in. We need to define relevant reversal signals for further confirmation.
The current structure suggests that Wave 2 is an ABC structure with the C-wave being a five-wave move. Although we have yet to break above the Wave 4 high, the price is attempting to break out of its channel, which is a crucial signal.
For confirmation, any pullback now should hold above the 78.6% retracement at $1.90. This level is key and will move higher with the price. A break below today's low at $2.18 would negate the bullish outlook.
Short-Term and Long-Term Outlook
While the move up is substantial, it doesn't yet show a clear five-wave structure, unlike Solana. The next step would be to see if BON forms a higher low. If it does, this would further confirm the bottom.
In a third wave rally, this move would be the first wave of Wave 3, followed by a Wave 2 pullback. The larger the wave degree and timeframe, the more confirmation we'll have. Once we get a larger five-wave move-up, we can watch for the next corrective pullback in the larger Wave 2.
Stay Updated
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