- BONK bulls could only muster a weak recovery from a key support area on the price chart.
- If bearish pressure continues, BONK will regain 100% of its rally from two weeks ago.
Bonk [BONK] a huge upward movement can be seen in mid-December. From December 13 to 15, buyers of the meme coin went on a rampage, pushing prices up 256% at its peak. However, the sellers now seem to have the upper hand.
Still, BONK is one of the most popular meme coins of the year. It remains to be seen whether the bulls can defend the support zone within which the price is at the time of writing. A move past $0.0000168 would be the first sign of a buyer’s rebound.
The Fibonacci retracement levels have been breached
Source: BONK/USDT on TradingView
The rally from $0.0000092 to $0.000035 in mid-December was used to chart a series of Fibonacci retracement levels (light yellow).
The 78.6% level at $0.0000147 was expected to act as support, with the bullish breaker block just below it as an additional confluence.
Still, sellers have been strong this past week. The OBV saw only a small decline, but the RSI has dropped below the neutral 50 and retested it as resistance. This meant that momentum was firmly bearish.
The market structure on the 12-hour chart was also bearish. Therefore, BONK is likely to head south towards the $0.0000118 and $0.00000925 levels.
Source: Mint glass
Since December 24, the Open Interest chart has been sliding downwards. It fell from $248 million to $155 million on January 1, in addition to a 33% price drop.
Realistic or not, here is BONK’s market cap in BTC terms
This was a strong sign that market sentiment was bearish in the short term.
Since the bulls were unable to use $0.0000147 as support during the rebound on December 29, it can be assumed that the bears have taken control. So Bonk’s buyers can wait for the structure to change bullishly before bidding.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.