Bonk price reached a monthly peak of $0.000033 on July 21. However, the memecoin couldn't sustain its upward momentum and dropped to $0.000025 four days later. After attempting to reach the peak again, it faced rejection at $0.000030 and lost 4.15% of its value in the last 24 hours.
What's Happening with Bonk?
According to the chart shown below, BONK initially fell below the EMA 20 average on July 29. EMA stands for Exponential Moving Average, a technical indicator that detects trend direction. Generally, if a cryptocurrency's price is below the EMA, the trend is downward. However, a rise above this can lend credibility to a bullish reversal for BONK.
At the time of writing, BONK is trading at $0.000027. If the price stays above the support, the memecoin could recover some of its recent losses. However, this requires buying pressure, which is currently lacking, although volatility around Bonk is improving.
In the crypto market, price movements are largely noticeable; hence the ecosystem is often termed highly volatile. If volatility increases, a cryptocurrency's price can experience significant changes rapidly. However, this depends on whether there is good buying pressure. If selling pressure dominates, high volatility can cause the price to drop quickly. Conversely, if buying pressure is in control, prices can rise rapidly.
BONK Chart Analysis
As of the date of this writing, BONK was trading above the 61.8% Fibonacci retracement level. The Fibonacci indicator shows data for prices to rise to levels where reversals are likely. Surpassing the 61.8% Fibonacci level, also known as the golden ratio, lends credibility to BONK's recovery attempt. This is also confirmed by the Awesome Oscillator (AO), which shows decreasing red bars indicating weakening downward momentum.
Moreover, a positive AO reading suggests that bullish momentum could soon return. If this happens, BONK's price could return to $0.000030. On the downside, if bears force a rejection, BONK could fall to $0.000026 or $0.000024.
