[BONK Price Forecast: Optimism fades, consolidation is coming]
The price of BONK tokens mainly moves with broad market trends. The current market uncertainty and investor skepticism are becoming problems for BONK holders. This is evident from the funding rate.
Funding interest rate is a mechanism used in perpetual contracts to balance long and short positions, showing traders' preferences. BONK's funding rate, while positive, rebounded from negative to near zero last week, indicating that bullish bets are not strong and the market lacks upward momentum.
Additionally, the Average Directional Index (ADX), an indicator used to assess trend strength, has been declining since mid-April. Despite the increase in BONK price on April 20, the decline in ADX suggests that there is insufficient market support to effectively break out of the consolidation zone.
Currently, BONK price is trading at $0.0000232, above the $0.00002153 support but failed to break above the $0.0000284 resistance. These levels are indicative of the range of consolidation over the past month.
Looking ahead, although BONK has recovered somewhat after the decline, it is more likely to fall again rather than break out of the consolidation zone. If BONK breaks above the $0.0000284 resistance, a push to $0.00003 or higher is possible, which would invalidate the current Bearish-Neutral forecast.
