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The BONK price movements have brought it close to a critical support level, and its response could make or break the price trajectory from there. A detailed technical analysis on the TradingView platform suggests that the cryptocurrency’s current setup could lead to a bullish breakout to retest its all-time high at $0.00005825, or a further decline below $0.00001497, depending on how the price action unfolds in the coming days.
Sloping channel and double bottom pattern for BONK
Meme cryptocurrency BONK is largely traded within a descending channel for the past three monthswhich is characterized by the formation of lower highs and lower lows on the daily candlestick time chart. This descending channel pattern kickstarted after BONK reached it a new all-time high of $0.00005825 on November 20, 2024.
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As noted by the analyst on TradingViewBONK price is currently showing signs of a healthy retracement after a rejection at a lower high within the descending channel. This retracement now finds the meme coin in a critical support zone around $0.000026 within the descending channel. Interestingly, the retest of this support zone indicates the possibility of a double bottom pattern as the price chart shows that BONK had bounced out of this zone on December 20, 2024.
The double bottom is the bullish scenario for the BONK price. However, the analyst emphasizes that confirmation on shorter terms is essential to realize this double bottom scenario. Specifically, a bullish Internal Change of Character (I-CHoCH) within the current support zone would signal buyers re-entering the market, which would increase the likelihood of a breakout from the descending channel.
Key price levels to watch out for for the BONK price
The $0.000026 level is emphasized as a crucial pillar level to keep an eye on in the coming days to see how it ultimately plays out for BONK. Should BONK recover from this level, the first step toward a sustained bullish move would be to break the upper trendline of the descending channel, which would be somewhere between $0.000030 and $0.000031.
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When the outbreak was confirmed, the analyst identified himself multiple resistance levels that BONK would encounter on its way to a new record. These levels include $0.00003657, $0.00004754 and a strong resistance point at $0.00006340.
However, the analyst also points out that there remains a risk of further retracement or even panic selling, especially if BONK fails to show bullish confirmations via an I-CHoCH in the lower timeframes. This scenario could trigger a break below USD 0.000026 to reach a new strong support zone, where a similar I-CHoCH confirmation would still be needed to validate a potential rebound. Without these confirmations the The bullish outlook could be debunked.
At the time of writing, BONK is trading at $0.00002863 and is up 5% in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com