BONK drops 30% as profit-taking hits, but key levels suggest potential for recovery.
Support found at 50% Fibonacci level and 50-day SMA if price drops below $0.000039.
Declining demand and whale de-risking could slow recovery; key levels and whale re-entry matter.
Bonk (BONK) dropped 30% this week as profit-taking took over after reaching a new all-time high of $0.000062. While the decline is significant, certain levels could signal a potential recovery. Traders are watching closely to see if bulls can regain momentum. Here’s what to look for in the coming days.
BONK’s Pullback and Key Support Levels
BONK’s price pullback stopped just short of hitting the -61.8% Fibonacci level. Although this level isn’t critical, the pullback created price imbalances. Two key price zones could offer strong support for bulls. The first imbalance sits above the 23.60% Fibonacci level.
The second is at the 50% Fibonacci retracement, which aligns with the 50-day Simple Moving Average (SMA). If the price drops below $0.000039, this 50% level could act as strong support. If bullish momentum returns, these levels could be key re-entry points. However, short sellers may delay a recovery if they continue to take profits.
Demand Decline and Whale Activity Could Slow the Rebound
Earlier in November, rising spot market demand drove the rally, shown by a sharp increase in the Cumulative Volume Delta (CVD). But now, both spot and futures market demand has fallen. Open Interest (OI) and CVD are moving lower, showing weak demand.
This could make a quick recovery more difficult. Another bearish signal is the activity of whales on Binance. Since mid-November, whales have been reducing their long positions. This shift has been reflected in the Whale vs. Retail Delta, showing fewer large players in the market.
When whales pull back, price action often slows or consolidates. For a price reversal, traders should watch key support levels and whale activity. If whales re-enter the market, it could signal a bullish comeback. Without that, the price may stay muted in the short term.
The post BONK Falls 30% as Profit-Taking Hits: Are Bulls Ready for a Comeback? appeared first on Crypto News Land.
