While major investors have been making significant profits from BONK, the meme coin has been observed to have experienced a sharp correction from its all-time highs.
After investors closed their positions, questions arose as to whether a recovery could be experienced in the broader altcoin market.
“The recent sell-off has created critical support levels for BONK, marking a significant turning point for the coin’s future,” one COINOTAG analyst said.
BONK has been facing a difficult period after major investors closed their positions. Price movements and recovery potential are among the developments that investors should watch closely.
The recent correction highlights the fragility of BONK’s price momentum, particularly the 30% drop following the coin’s all-time high of $0.000062. As large investors liquidate their positions, the impact on the price is being observed.
Technical analysis points to critical levels for a possible recovery. In particular, important Fibonacci retracement levels are noteworthy. Support is found near the 23.60% Fibonacci level, while the 50% Fibonacci retracement aligns with the 50-day SMA. This could form a strong support area if prices break below $0.000039. Investors are watching these levels, and a critical stage has been reached to observe whether the bulls can maintain their momentum in the coming periods.
Current analysis shows that demand for BONK has decreased significantly. The decline in both spot and futures markets is evidence of this decreasing demand. Cumulative Volume Delta (CVD) has shown a significant decrease, indicating the decreasing buying interest during the meme coin market decline. This change in demand suggests that the altcoin’s recovery may be even more difficult without investor enthusiasm. As the market digests this pullback, it is critical for investors to pay attention to BONK’s changing dynamics.
The emergence of supportive indicators could boost the chances of a recovery, especially if interest from large investors revives. The bulls’ performance against major resistance levels will play a key role in identifying potential entry points and assessing the strength of any recovery.