- Bears grip the market as BONK faces potential downward trajectory.
- Market indicators suggest both a short-term bounce and further decline.
- “The recent breach of key support levels indicates continued bearish pressure,” analysts predict.
BONK price tumbles amidst wider memecoin sell-off, with a potential 20% drop on the horizon.
BONK Loses Key Fibonacci Support Level: Further Decline Expected
Over the past week, BONK has declined by 13%, reflecting the broader struggle seen in the memecoin sector. Crucially, it has fallen below the 78.6% Fibonacci retracement level, signaling increased bearish pressure. The Moving Average Convergence Divergence (MACD) confirms this trend, as does the bearish crossover of the 20- and 50-day moving averages.
Potential Short Squeeze Before Further Downtrend
Despite the downward trend, there is potential for a short-term price recovery due to significant liquidation levels. The heatmap reveals substantial short positions that could trigger a short squeeze, potentially providing a temporary upward movement to $0.0000188 and $0.00002.
Technical Indicators and Swing Trading Opportunities
Detailed analysis of the BONK/USDT chart from TradingView shows that the market conditions are ripe for swing traders to exploit. The A/D indicator signifies reduced buying pressure, diminishing the likelihood of a fast recovery. Yet, traders might find profitable opportunities by targeting the liquidation pockets around $0.0000188, $0.00002, and $0.000015.
Conclusion
In summary, while BONK is under considerable bearish pressure, the possibility of a short squeeze offers some respite for traders. Should the market dynamics align, a temporary price recovery could precede further declines. Careful monitoring of key levels and technical indicators will be essential for navigating this volatile period.
