BONK Price Forecast: Weak Volume and TRUMP Token Dominance Pose Risks to Rebound

BONK price has struggled to maintain its bullish momentum, facing significant headwinds as the TRUMP token drains liquidity from Solana’s memecoin ecosystem. Despite a recent attempt at recovery, weak trading volume and shifting market dynamics signal a challenging path ahead.

BONK’s Attempted Rebound Stalls

Following a steep 30% decline last week, BONK price experienced a 9% bounce from $0.22 to $0.26 between Wednesday and Friday. This brief rally rekindled investor optimism after a seven-day losing streak. However, the rebound has been met with resistance, and traders remain cautious.

The resurgence of interest in Solana-based memecoins initially supported BONK’s price recovery. Market sentiment surrounding altcoin ETFs and broader institutional interest in Solana have also played a role in maintaining optimism. Yet, BONK continues to face substantial liquidity challenges that threaten sustained upward momentum.

TRUMP Token’s Market Dominance Weighs on BONK

A major factor hindering BONK’s recovery is the dominance of the TRUMP token, which has siphoned liquidity away from BONK’s market. The TRUMP token launch on January 20 sent shockwaves through the Solana memecoin space, surging to a $12 billion market cap within 24 hours.

Although TRUMP has since corrected to $4.9 billion, it still overshadows BONK’s $1.8 billion market cap. This shift has been particularly evident in BONK’s trading volume. On January 19, BONK recorded a trading volume of 1.2 billion tokens. By January 31, this number had plummeted to just 220 million tokens—a staggering 83% decline.

A sharp drop in trading volume often signals weakening momentum, making it difficult for BONK to sustain significant price gains. If investor demand continues to favor TRUMP, BONK’s price action may remain sluggish despite broader bullish sentiment surrounding Solana’s ecosystem.

Also Read: Shiba Inu Price Poised for Growth: Can SHIB Reach $0.01 Amid Massive Token Burns?

BONK Price Forecast: Double-Bottom Pattern Emerges

From a technical perspective, BONK’s price chart displays a classic double-bottom pattern, suggesting a potential bullish reversal. The projected breakout target sits around $0.00005500, but bearish pressure remains dominant.

Currently, BONK is trading at $0.000024, struggling to reclaim the VWAP at $0.000026. This level serves as a crucial resistance point that could determine the next major move. A decisive breakout above this level could accelerate momentum toward the psychological resistance at $0.00003426.

Conversely, failure to sustain above $0.00002400 could trigger further downside, extending losses to $0.00002128 or lower. Given the weak bullish momentum and declining volume, traders should remain cautious as BONK navigates a volatile market environment.

Despite an attempted rebound, BONK faces strong headwinds due to the TRUMP token’s market dominance and weak trading volume. While a potential double-bottom formation hints at a breakout, the prevailing bearish trend suggests further downside risks. Until liquidity improves and BONK reclaims key resistance levels, a sustained recovery may remain elusive.

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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