BONK is currently facing turbulent waters as a sharp decline casts a shadow over its recent price performance. After a period of impressive gains, the latest decline raises concerns about an impending correction, with increased selling pressure suggesting that bullish momentum may be waning. As market sentiment changes, the crypto community is left wondering how low BONK can go and whether it can bounce back.
With uncertainty in the air, this analysis aims to analyze BONK’s recent sharp decline and assess the implications for its future price action. By examining key technical indicators, market sentiment, and trading patterns, we aim to assess the possibility of an upcoming correction. This piece will provide insights into potential support levels and resistance points, allowing traders and investors to make informed decisions in the face of uncertainty.
Recent Performance: Regression Analysis
Recently, BONK price has changed on the 4-hour chart, moving back to the 100-day Simple Moving Average (SMA) and moving above the support level of $0.00001792. A decline from an overbought position may indicate that traders are taking profits or that buying interest is waning leading to a pullback.
Analysis of the 4-hour Relative Strength Index (RSI) reveals that the signal line has dropped to 66%, retreating from the overbought zone. This decline suggests a change in market momentum, indicating that buying pressure is beginning to ease. A reversal from an overbought position usually indicates that the market may be facing a correction, as traders who bought during the bullish movement may start taking profits.
Furthermore, on the daily chart, BONK shows negative momentum, as evidenced by the formation of a bearish candle, or while trading above the 100-day SMA. This situation indicates a possible conflict in market sentiment. If the selling pressure continues and BONK is unable to maintain its position above the 100-day SMA, it may lead to a more significant price correction.
Finally, on the 1-day chart, the RSI has risen above 50% and is currently sitting at 73%, indicating a strong sense of optimism and buying pressure. While this points to more price gains, the proximity of an overbought zone increases the chance of a pullback if buying slows down.
BONK Price Trend Predictions
With technical indicators suggesting an upcoming reversal, BONK may face a price drop to the $0.00001792 level. If this support is breached, it could open the door to further losses, possibly bringing the price down to $0.00000942 and other lower ranges.
However, if the bulls manage to pull back and push the price above $0.00002320, the meme coin can continue its upward momentum towards the next resistance level at $0.00002962. A successful breach of this level may trigger further gains, allowing the price to challenge other resistance levels above.