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BONK is currently facing increased bearish pressure as technical indicators suggest a weakening market. Despite a brief attempt to stabilize, the token is once again dropping towards the $0.00004002 support level, with key metrics indicating further downside potential. As BONK navigates these challenging conditions, speculation surrounds whether the meme coin can recover or if deeper losses are on the horizon.
This analysis delves into BONK’s current market performance in the midst of bearish conditions, focusing on the technical indicators signaling potential weakness. Additionally, we will evaluate the chances of a recovery versus a continuation of BONK’s downward trend by examining crucial support levels, market trends, and the overall outlook.
Technical Indicators Point to Growing Weakness for BONK
On the 4-hour chart, BONK shows a negative sentiment, trading below the 100-day Simple Moving Average (SMA) as it heads towards the $0.00004002 support level. A continued descent to this support indicates increasing selling pressure, and a breach of the support could lead to further declines in the asset’s price.
Furthermore, an examination of the 4-hour chart indicates that the Relative Strength Index (RSI) has decreased to 44% after a previous rally attempt that peaked at 49% before losing momentum. A declining RSI, especially below the neutral 50% level, suggests a growing bearish momentum. A further drop in the RSI could confirm the downtrend, potentially leading to more significant price declines as selling pressure escalates.
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On the daily chart, the meme coin shows significant downward movement, characterized by a bearish candlestick with a strong rejection wick following a failed recovery attempt. The inability to maintain an upward trajectory indicates a lack of confidence among buyers and prevailing negative sentiment in the market. As BONK approaches the $0.00004002 support level, selling pressure could intensify, raising concerns about a potential breakdown.
Lastly, the 1-day RSI indicates increasing negative pressure on the cryptocurrency, with the signal line dropping sharply from the overbought zone to 56%. This decline signals a shift in momentum, suggesting weakening buying strength and rising selling pressure. A continued decrease in the RSI could indicate sustained pessimism and further declines for BONK.
Recovery or Further Decline for BONK?
As BONK confronts bearish pressure, two potential scenarios emerge: a recovery or further decline. If the meme coin manages to hold the critical $0.00004002 support level and attract renewed buying interest, it could trigger a turnaround, potentially reversing the current downtrend and pushing the price towards the $0.00006247 resistance range and beyond.
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However, if selling pressure persists and BONK fails to sustain the $0.00004002 support level, a deeper decline could ensue, with the price potentially dropping to lower support levels such as $0.00002962, $0.00002320, and below.
Featured image from X, chart from Tradingview.com