Bonk [BONK] led the pack of top weekly losers among memecoins, as the broader cryptocurrency market shifted its focus towards larger and mid-cap altcoins. The recent altcoin season narrative has seen a surge in interest for projects with solid fundamentals and real-world utility.
Profit-Taking After All-Time High
Bonk’s recent price surge, which peaked at $0.000062, was fueled by a wave of enthusiasm and speculation. However, as the initial euphoria subsided, profit-taking intensified, leading to a 29% decline from its all-time high.
Key Levels to Watch
While the recent pullback has been significant, there are key levels that could provide support for Bonk’s price:
- Fibonacci Retracement Levels: The 23.6% and 50% Fibonacci retracement levels could act as potential support zones.
- 50-Day Simple Moving Average (SMA): The 50-day SMA, which aligns with the 50% Fibonacci level, could provide additional support.
- Stochastic RSI: The elevated and oversold Stochastic RSI suggests that Bonk could experience further downward pressure in the short term.
Waning Demand and Whale Activity
A decline in both spot and futures market demand has further dampened Bonk’s price outlook. Additionally, whale activity has been bearish, with large holders reducing their positions. This could lead to muted price action or even further declines in the short term.
For Bonk to regain its upward momentum, it will need to recapture the attention of the broader cryptocurrency community. A resurgence of the memecoin narrative and increased demand from retail investors could be crucial factors in driving a price recovery.
Also Read: BONK Rockets 12% After Upbit Listing, Market Cap Tops $4.2B
Traders should closely monitor key price levels, whale activity, and overall market sentiment to make informed decisions regarding their Bonk investments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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