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THUMP is facing mounting bearish pressure as technical indicators point to growing weakness in the market. After a brief attempt to stabilize, the token appears to be losing momentum and falling back towards $0.00004002 for another test, with key metrics pointing to a further downtrend. As BONK navigates these challenging conditions, there is speculation as to whether the meme coin can regain its footing or whether bigger losses are inevitable.
This analysis dives into BONK’s current market performance under bearish conditions, highlighting the technical indicators that point to this potential weakness. Moreover, we will assess the likelihood of a recovery or a continuation of BONK’s downward trajectory by analyzing critical support levels. market trends and the broader vision,
Technical indicators point to increasing weakness for BONK
BONK is negative on the 4-hour chart sentimenttrading below the 100-day Simple Moving Average (SMA) while trending down towards the $0.00004002 support level. A continued decline towards this support indicates that selling pressure is increasing, and if support does not hold, the asset could fall even further.
Furthermore, analysis of the 4-hour chart shows that the Relative Strength Index (RSI) has now fallen to the 44% level, following an earlier attempted rally, which peaked at 49% before losing steam. A falling RSI, especially as it remains below the neutral level of 50%, indicates that this is bearish momentum is building. If the RSI continues to decline, it could further confirm the downtrend, potentially leading to bigger price declines as selling pressure increases.
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On the daily chart, the meme coin is notable down move, marked by a bearish candlestick with a strong rejection wick that has emerged after a failed recovery attempt. The inability to maintain an uptrend implies a lack of buyer confidence and a prevailing negative sentiment in the market. As BONK targets a support level at $0.00004002, pressure from sellers could increase, raising concerns about the possibility of a breakdown.
Finally, the 1-day RSI shows increasing negative pressure on the cryptocurrency, with the signal line falling sharply from the overbought zone to 56%. This decline marks a shift in momentum, indicating that purchasing power is weakening and selling pressure is increasing. Should the RSI continue to decline, this could indicate continued pessimistic sentiment and a decline for BONK.
Bounce back or fall further back?
Two possible scenarios are likely as BONK faces bearish pressure: a recovery or a further decline. If the meme coin If the critical support level at $0.00004002 can be maintained and attract renewed buying interest, it could lead to a recovery, potentially reversing the current downtrend and pushing the price towards the resistance range of $0.00006247 and beyond.
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However, if selling pressure continues and BONK fails to hold the $0.00004002 support level, a deeper reject could follow, with the price possibly falling towards lower support zones including $0.00002962, $0.00002320 and below.
Featured image of X, chart from Tradingview.com