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- BONK drops 12% since September 1, breaking $0.0000226 support.
- Technical indicators signal strong downtrend; buyers showing weakness.
- Short-term support lies at $0.0000193 and $0.0000185 liquidity zone.
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BONK, the meme-inspired cryptocurrency, has seen a notable 20% spike in daily trading volume, according to CoinMarketCap. Yet, the token’s value has struggled, dropping nearly 12% since September 1 and falling below a critical support level at $0.0000226. The mixed signals are raising concerns for traders and investors as the token navigates a bearish market structure.
Comparison With SHIB and PEPE
While BONK struggles, other memecoins like Shiba Inu (SHIB) and Pepe (PEPE) are showing stronger momentum. AMBCrypto highlighted that whale buyers for SHIB and retail activity for PEPE could help push these tokens past key resistance levels. In contrast, BONK’s fall below $0.00002 has shaken holder confidence, suggesting further downside risks could be imminent.
Volume Profile Indicates Key Levels
Technical analysis using the Fixed Range Volume Profile from late June to present shows the Point of Control (POC) at $0.0000224, near the previous $0.0000226 support and a key Fibonacci retracement level. BONK’s drop below the POC took it to the Value Area Low at $0.0000193, which currently acts as local support. However, the price action indicates a bearish trend, signaling potential further losses if the level fails to hold.
Technical Indicators Signal Downtrend
The Directional Movement Index (DMI) confirms the downtrend, with the -DI and ADX above 20, suggesting strong bearish momentum. Additionally, the Accumulation/Distribution (A/D) indicator has been forming lower highs over the past two weeks, reflecting weakening buying pressure.
BONK’s 3-month liquidation heatmap highlights two significant liquidity zones near its market price, the nearest at $0.0000185. After sweeping this short-term liquidity pocket, a bullish reversal could target $0.0000235, offering potential upside if market conditions improve.
Also Read: BONK Price at $0.0000225: Support or Breakdown?
BONK’s current trajectory signals caution for traders. While volume surges suggest heightened interest, technical indicators point to a continued downtrend. Investors should monitor key support at $0.0000193 and liquidity zones near $0.0000185 before expecting a reversal.
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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
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
