BONK is a Solana-based memecoin that has recently been consolidating within a falling wedge pattern. BONK price reversed sharply from the $0.00004200 supply zone.
Over the past three months, the index has corrected more than 60% and is showing a clear bearish trend.
The coin’s value has fallen by more than half from its 52-week high. It continues to form lower lows and is struggling at the critical $0.00001600 pivot point.
This week, the coin has continued to fall, with the price dropping by more than 15%. Notably, the memecoin price fell below the 200-day EMA mark, making it difficult to achieve a bullish reversal.
BONK partners with Major League Baseball
The Baseball Federation announced that Bonk (BONK) will become the official partner of baseball for the next season (2024-25). The partnership aims to break down the barriers between sports and digital currencies.
This recognition could bring the alliance and crypto assets to a new level of recognition.
BONK Price Action Analysis
Memecoin has been unable to maintain momentum over the past three months and has been trading under a bearish influence. A bearish crossover occurred and the coin fell below key moving averages.
Going forward, the coin’s price is set to reach the edge of its demand zone, which is around $0.00001500. Until memecoin holds this level, further selling will not hit the bulls.
However, if broken, the next bearish move in the short term will be to stabilize around $0.00001300.
At the time of writing, the BONK token was trading at $0.00001752, down 5.20% intraday, reflecting the bearish sentiment on the charts.
Memecoin has a market cap of $726.93 million, ranking 54th, with a total supply of 99.19 trillion.
Will on-chain indicators remain bearish or turn bullish?
Despite the intraday price drop of more than 5%, the price action line has turned down. This shows low selling pressure and low volume participation. This could be a sign of bottoming out and memecoin may find support here.
During the price decline, investor confidence in BONK has been low as the curve is below the zero line. This means that the sentiment towards the memecoin is negative.
The lack of follow-through on the upside suggests a lack of confidence among buyers and a possible pullback to the bottom support.
BONK bulls attempted to gain momentum during the recovery in most of the crypto-altcoin markets last week. However, they failed to break out of the 200-day EMA barrier and limited the downside.
Financing rates look negative
At press time, the funding rate for Bonk memecoin is -0.0120%. Generally speaking, a negative funding rate means that most traders are holding short positions, which is a sign of a bearish trend.
also,futuresOpen interest (OI) shows new short-sale activity as OI surged more than 7% in the past 24 hours to $6.56 million.
If the bearish trend persists, memecoin might face challenges to break above the 200-day EMA barrier, which is near $0.00002000. It could rise further.
The current resistance level is around $0.00001860, followed by $0.00002100.
Meanwhile, an immediate support area is near the $0.00001650 level, followed by the $0.00001580 mark.
Source: Golden Finance
