Bonk Price Approaches Key Support, Another Bounce or 40% Correction?

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During U.S. trading hours on Friday, I observed a significant dip of more than 5% in BONK’s price, suggesting a halt in the mid-week recovery within the crypto market. The absence of further upward momentum seems to indicate a lack of confidence from buyers and potentially foreshadows a retreat towards the bottom support. Could this correction continue?

BONK Price Poised to Retest Major Support

As a crypto investor, I’ve seen some exciting movement with BONK this week. After dipping to $0.0000155, it surged up to $0.0000218 – that’s a substantial 40% leap! This sudden rise in many altcoins seems to be linked to Bitcoin‘s recovery above $60000. The market appears to be experiencing a relief rally, which is great news for us crypto enthusiasts.

In situations like these, meme cryptocurrencies tend to be among the most active due to their unpredictable behavior and sensitivity to speculative trading. Yet, this spike does not necessarily signal a change in direction from the severe decline seen in July.

As a result, the meme token BONK, which operates on the Solana network, dropped in value again to around $0.000020, and its total market capitalization decreased to approximately $1.43 Billion.

As a crypto investor, I’ve noticed a bearish crossover occurring between my 50-day and 100-day Exponential Moving Averages (EMAs). This could potentially intensify the selling pressure, causing the meme token to drop by approximately 16%. The current price is testing the support of the channel pattern at $0.000016. Furthermore, the price dipping below my daily EMAs (20, 50, 100, and 200) suggests that the trend might be heading downwards.

If the price of BONK falls below its current trendline, it could intensify the selling force, disrupt a six-month price pattern, and potentially drive the price down to $0.000012.

Bonk Price Approaches Key Support, Another Bounce or 40% Correction?

Instead, it’s worth noting that the ascending channel has frequently functioned as a preferred area for investors seeking bargain entry points. In April 2024, a significant rally of approximately 237% was initiated following the last reversal from the lower trendline, which propelled the price to $0.0000445.

Today’s Relative Strength Index (RSI) bounced back to 40%, highlighting a strong effort by buyers to regain control at this critical bottom support. This technical indicator gauges the pace and direction of price fluctuations, suggesting if an asset is becoming overbought or oversold.

Given the circumstances, it’s likely that the BONK price will experience another surge due to this robust support level during the current market downturn. This rebound could potentially boost the coin’s value by approximately 0.000034 USD, indicating a potential increase of more than 70%.

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2024-08-09 18:33