The dramatic drop in the value of Solana-based meme coin Bonk (BONK)
Over the past week, the value of Solana-based meme coin Bonk (BONK) has experienced a significant decline. As of the latest update, BONK is trading at $0.000021, marking a 24% decrease in the past seven days. This drop has brought BONK’s price to crucial support levels that have been forming a descending triangle pattern since May, indicating the possibility of further declines.
The uncertainty of BONK’s uptrend support
When examining BONK’s 1-day chart, it is evident that the altcoin has been following a descending channel since May 29, resulting in a 42% decrease in its value at current prices. This descending pattern typically consists of lower highs and horizontal support lines, suggesting a continuation of the bearish trend if the price breaks below the horizontal support line. Currently, BONK is hovering near the support level at $0.000021.
Key technical indicators on the daily chart also indicate the potential for a break below this level and a further downtrend. For instance, the relative strength index (RSI) for BONK is currently at 36.35, indicating a downward trend. The RSI measures overbought and oversold market conditions, with a value below 30 suggesting oversold conditions.
Is a new low in BONK’s price prediction on the horizon?
The configuration of BONK’s Moving Average Convergence/Divergence (MACD) indicator reinforces the bearish sentiment towards the meme token. The MACD line, as of the latest data, is below the signal line and the zero line, signaling weakening price momentum and a potential further decline. A break below the zero line would confirm a strong downtrend, prompting traders to consider exiting long positions and entering short positions.
If the bulls fail to uphold the support line, BONK could potentially drop to $0.000012, reaching a multi-month low not seen since April 12. However, a shift in market sentiment from negative to positive, coupled with a surge in BONK’s cumulative trading volume, could propel the price to $0.000025.
The information provided in this article is for informational purposes only and should not be construed as financial advice. Trading in cryptocurrencies involves risk, and individuals should conduct their own research before making any investment decisions.
