5 months ago
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- BONK Breaks Out of Downtrend: After weeks of lower highs and lows, BONK has pushed past its descending channel, hinting at a potential momentum shift if support holds.
- Indicators Suggest Strength Building: RSI is climbing from oversold levels, while the MACD nears a bullish crossover, signaling that buying pressure could be increasing.
- Key Support at $0.0000091 in Focus: Analysts warn that holding this level is crucial—if it breaks, further downside is likely, but a bounce could spark a major rally.
Memecoins have been in rough waters lately, and BONK hasn’t been spared. The token has plunged 8.61% in the past seven days, leaving traders wondering—is a turnaround brewing?
At press time, BONK sits at $0.00001584, with a 24-hour trading volume of $115.73 million and a market cap of $1.22 billion.
BONK Breaks Out—But Can It Hold?
A glance at the BONK/USDT daily chart tells an interesting story. The price has finally broken out of a descending channel, which could signal a potential shift in momentum.
For weeks, BONK had been stuck in a downtrend, making lower highs and lower lows. But now? It’s pushing past the channel’s upper trendline—a sign that the sellers might be losing their grip.
A key support level at $0.00001570 has held strong, preventing further dips. If buyers step up, BONK could aim for $0.00005900—a massive 271.64% rally from the breakout level.
source: TradingView
Indicators Hint at Strength
The technical indicators suggest selling pressure might be cooling off.
- Bollinger Bands are tightening, indicating low volatility. BONK is hovering near the middle band at $0.00001589—a break above $0.00001816 could confirm a trend reversal.
- If support falters, expect a retest of $0.00001402.
Meanwhile, the Relative Strength Index (RSI) is sitting at 32.38, creeping away from oversold conditions. A move past 40-50 could confirm increased buying interest.
Adding to the intrigue, the MACD is on the verge of a bullish crossover. The MACD line (-0.00000258) is approaching the signal line (-0.00000279), hinting that momentum could soon favor buyers.
Funding Rate & Market Sentiment: A Mixed Bag
Market sentiment remains a bit of a toss-up. According to Coinglass:
- BONK’s trading volume is up 4.66% to $25.29 million.
- Open Interest has climbed 4.30% to $9.86 million.
However, the OI-Weighted Funding Rate is still negative at -0.0089%, meaning shorts are paying longs. If this flips positive, it could confirm a shift in sentiment toward the bulls.
Can BONK Hold the Key Support?
Despite its recent slump, analysts are closely watching BONK’s $0.0000091 support level—a zone last tested in February 2024.
Crypto analyst gnarleyquinn believes holding this zone could present an ideal buying opportunity. Echoing this, Ali Martinez added:
“If BONK maintains this support level, a potential bounce could follow.”
With momentum indicators flashing early signs of strength, traders are keeping a close watch. Will BONK turn the tide, or is another leg down in store? Time will tell.
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