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BONK [BONK], the popular Solana-based meme coin, continues to face a tough battle against bearish market forces. On the daily chart, BONK has retested the critical $0.0000099 support level twice over the past month—raising concerns that a new 2024 low may be on the horizon if the current downtrend persists.
Since March, BONK has been trading within a descending channel, with the mid-channel level acting as a pivot point for both resistance and support. After facing rejection at the channel high on Sunday, the price has drifted lower, now targeting the mid-channel zone near $0.000011 as the next potential support.
While the Relative Strength Index (RSI) climbed above the neutral 50 mark last week—hinting at a shift toward bullish momentum—the move lacks conviction. There’s yet to be a clear structural break or notable buying volume to suggest a reversal in trend.
Adding to bearish sentiment is the On-Balance Volume (OBV), which continues to hover near its February and March lows. This signals weak demand, despite recent price bounces, and suggests that bullish attempts remain feeble. Traders eyeing BONK should be cautious and may consider short positions during upward retracements.
According to Coinglass’ liquidation heatmap, the $0.0000113 level—just below the current market price—could act as a magnet for short-term price action due to its liquidity cluster. A more significant target looms at $0.000014, aligning with the descending channel’s upper resistance zone.
In the short term, a bounce from the $0.000011 zone remains possible due to its confluence with mid-channel support. However, unless BONK can generate sustained buying pressure and break out of its bearish structure, traders are advised to follow the prevailing trend and approach bullish setups with skepticism.
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.
Also Read: Memecoins Struggle: BONK, SPX, WIF Drop 12% in 24 Hours Amid Liquidity Crisis
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
