Bond prices plunged more than 5% during U.S. trading hours on Friday as the mid-week recovery in the cryptocurrency market stalled. Lack of follow-through on the upside suggests a lack of confidence from buyers and a possible pullback to bottom support. Will the corrective trend continue?

Bond prices poised to retest key support
This week, bond prices recovered significantly from a high of $0.0000155 to $0.0000218, a gain of 40%. The sudden rise in most major altcoins comes after Bitcoin recovered above $60,000 in a market relief rally.

In this case, the meme cryptocurrency tends to be one of the most active cryptocurrencies due to its volatility and acceptance of speculative trading. However, compared with the sharp downtrend in July, this surge does not confirm a trend reversal.

As a result, Solana-based memecoin BONK plummeted to the $0.000020 price level, with the market cap dropping to $1.43 billion.

A bearish crossover between the 50-day EMA and the 100-day EMA could re-increase selling pressure and plunge the meme token by 16% to $0.000016 to retest the channel pattern support. The price is below the daily EMAs (20, 50, 100, and 200) suggesting that the path of least resistance is on the downside.
A potential breakdown below the lower trendline would accelerate selling pressure, breaking the six-month pattern and pushing the bond price to $0.000012.


Conversely, the ascending channel has been a major accumulation zone for investors seeking discounted entry points. The last reversal from the lower trendline in April 2024 triggered a massive 237% rally that pushed the price to $0.0000445.

The daily relative strength index (RSI) rebounded to 40%, highlighting that buyers are trying to regain control of this bottom support. In theory, this momentum indicator measures the speed and change of price changes, indicating whether an asset is overbought or oversold.

Therefore, there is a high probability that the bond price will rebound again from this dynamic support and maintain its sustainability in the current market correction. The rebound after the reversal may increase the coin value by $0.000034, with a potential growth rate of more than 70% expected.#BONKUSDT