Bonk (BONK) has experienced a significant drop of 24% over the past week, bringing its current trading price to $0.000021. This decline has pushed BONK down to a crucial support level, which forms part of a descending triangle pattern that has been active since May.
Technical indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest that the bearish trend may persist. If BONK fails to maintain this support level, it could fall further to around $0.000012. However, if market sentiment shifts positively, there is potential for the price to recover.
BONK Drops in Descending Channel, Indicators Suggest Further Decline
BONK (BONK) has been trending within a descending channel since May 29, with its value falling by 42% to its current price of $0.000021. This descending channel pattern is characterized by a series of lower highs and a horizontal support level, indicating that the bearish trend may continue if the price breaks below this support.
BONK Daily Analysis. Source: TradingView
Technical indicators on the one-day chart support the possibility of a further decline. The Relative Strength Index (RSI) for BONK is currently at 36.35 and is trending downward. The RSI measures whether an asset is overbought or oversold, with values above 70 indicating overbought conditions and values below 30 suggesting oversold conditions.
BONK Relative Strength Index. Source: TradingView
BONK’s RSI of 36.60 highlights significant selling pressure, indicating that more market participants are selling off their holdings than buying new tokens. This persistent selling pressure contributes to the downward trend in BONK’s price.
BONK’s MACD Indicator Signals Bearish Momentum
BONK’s Moving Average Convergence/Divergence (MACD) indicator underscores the current bearish trend for the meme coin. The MACD line (blue) is positioned below both the signal line (orange) and the zero line, suggesting a weakening price momentum. When the MACD line falls beneath the signal line, it indicates that a continued decline is likely.
BONK Moving Average Convergence/Divergence. Source: TradingView
A further dip below the zero line reinforces this bearish outlook, as the shorter-term moving average moves further below the longer-term moving average. Traders often view this as a signal to exit long positions and consider shorting.
BONK Daily Analysis. Source: TradingView
Should BONK fail to maintain its current support level, it may drop to $0.000012, a low last seen on April 12. Conversely, if market sentiment shifts positively and BONK experiences increased accumulation, its price could potentially rise to $0.000025.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
