The Dramatic Decline of Bonk (BONK) Price on Solana Blockchain
Over the past week, the value of Solana-based meme coin Bonk (BONK) has experienced a significant drop. At the time of writing, BONK is trading at $0.000021, marking a 24% decrease over the last seven days. This sharp decline has pushed BONK’s price down to crucial support levels that have formed a descending triangle pattern since May, indicating the potential for further downside.
Challenges in Upholding Support for BONK
Analysis of BONK’s 1-day chart reveals that the altcoin has been following a descending channel pattern since May 29, resulting in a 42% decrease in its value. The descending channel pattern is characterized by lower highs and horizontal support lines, signaling a continuation of the bearish trend if the price breaks below the horizontal support line. Currently, BONK is hovering near the support level at $0.000021.
Key technical indicators on the daily chart of BONK also point towards a potential break below the support level and a continuation of the downtrend. For instance, the relative strength index (RSI) for BONK is at 36.35, indicating a downtrend. The RSI measures market conditions of overbought and oversold assets, with values above 70 signaling overbought conditions and values below 30 indicating oversold conditions.
Predicting the Future of BONK Price
The Moving Average Convergence/Divergence (MACD) indicator for BONK confirms a bearish bias for the meme token, with the MACD line below the signal line and the zero line. A drop in the MACD line below the signal line implies weakening price momentum and an imminent continuation of the decline. Further dropping below the zero line would signify a strong downtrend, prompting traders to exit long positions and potentially enter short positions.
If the bulls fail to defend the support line, BONK may see a further decline to $0.000012, reaching a multi-month low not seen since April 12. Conversely, a shift in market sentiment to positive, accompanied by a surge in trading volume, could propel BONK’s price to $0.000025.
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