📊 Bonk Price Approaches Key Support, Another Bounce or 40% Correction?

BONK price faces a critical support test as it nears $0.000018. The bearish crossover between the key EMAs could bolster another pullback before buyers regain bullish momentum.

BONK price plunged over 5% on Friday during U.S. trading hours as the crypto market’s mid-week recovery stalled. The lack of follow-up on the upside hints at a lack of conviction from buyers and a potential pullback to bottom support. Will the correction trend extend?

🔸 #BONK Price Poised to Retest Major Support

BONK price notably recovered from the $0.0000155 to $0.0000218 high this week, registering a 40% jump. This sudden jump in most major altcoins followed the Bitcoin recovery above $60000 amid a market relief rally. 

In such scenarios, the Meme cryptocurrencies often emerge among the highest movers due to their volatile nature and receptivity to speculating trading. However, this surge doesn’t confirm a trend reversal compared to the intense downtrend in July.

Thus, the Solana-based meme coin $BONK plunged back to the $0.000020 price level, and the market cap fell to $1.43 Billion.

A bearish crossover between the 50- and 100-day EMAs could renew the selling pressure and plunge the meme token to 16% to $0.000016, retesting the channel pattern support. The price below the daily EMAs (20, 50, 100, and 200) hints that the path to least resistance is down.

A potential breakdown below the lower trendline will accelerate the selling pressure, break the six-month pattern, and push the BONK price to $0.000012.

Conversely, the rising channel has consistently served as a prime accumulation zone for investors looking for discounted entry points. The last reversal from the lower trendline in April 2024 triggered a substantial 237% rally, pushing the price up to $0.0000445.

The daily Relative Strength Index (RSI) rebounded to 40%, accentuating the buyer’s attempt to retake control at this bottom support.