BONK has encountered a challenging period following its recent peak at an all-time high of $0.00003, which occurred just this past Wednesday. Since reaching this pinnacle, the price has undergone a significant decline, plummeting by more than 50%.
This notable downturn has raised concerns within the market, emphasizing the urgency for buyers to re-enter the scene promptly. The next moves by buyers will play a pivotal role in determining the trajectory of BONK’s price action.
BONK: Meme Coin’s Price Rollercoaster Ride
At the time of writing, the meme coin was trading at $0.000018, down 29% in the last 24 hours, and sustained a significant loss of 30.6 in the last seven days, data from Coingecko shows.
Latest BONK data mirrors a substantial price surge, drawing parallels to the remarkable and sometimes notorious ascents witnessed in other meme coins, such as Shiba Inu.
Yet, the chart now reveals the initiation of a descending pattern, with the emergence of red candles signaling a sell-off phase and hinting at the potential conclusion of the BONK narrative.
The evolving chart dynamics raise questions about the sustainability of BONK’s earlier success and introduce an air of uncertainty into its once-bullish trajectory.
BONKUSD currently trading at $0.0000190336 territory. Chart: TradingView.com
This week, Binance announced a notable expansion of BONK trading on its platform by introducing it to Binance Margin. This strategic move followed the earlier listing of BONK on the exchange with three additional pairs, a decision fueled by substantial demand for the meme coin.
The introduction of BONK to Binance Margin fueled speculation within the crypto community, with expectations of a potential price boost for the meme coin. However, the unfolding events took an unexpected turn, diverging from the anticipated trajectory.
Despite initial speculations, the market dynamics surrounding BONK underwent a different outcome, introducing a layer of unpredictability to its trading journey.
BONK seven-day price action. Source: Coingecko
As the price approaches the $0.000018 support level once again, the direction that BONK is moving in appears to be bearish. If it starts to decrease, it can soon reach the $0.000014 barrier.
RSI Decline Raises Concerns For BONK
The RSI on the three-day timeframe has been falling rapidly, going from 98 points in early December to 78 points today as the purchasing momentum has faded and the sell volume is increasing. Remaining bullish would be difficult if this kept up.
The chart’s high volatility, which is seen in its large price swings and suggests a struggle between buyers and sellers, is another important component. The market may be losing the sharp rising trend that typified previous rises as the Moving Averages (MAs) begin to flatten out.
Source: CoinCodex
According to CoinCodex technical indicators, the current sentiment is bullish despite the depressing numbers for BONK, and the Fear & Greed Index is currently displaying 74 (Greed).
As for the meme coin, the current price projection indicates a decline to the $ 0.000021 level by December 27, 2023, or a loss of 2.39%.
Despite an initially enchanting journey, BONK’s narrative now suggests a fading magic, leaving investors with another dog-themed asset lacking a clear use case.
The coin’s future appears to be navigating a cycle where exuberant explosions are followed by significant corrections, echoing the market’s sobering from speculative fervor.
Featured image from Pixabay