BONK Poised for Potential 20% Drop as Bearish Trends Dominate

  • 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.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Bitcoin Sees Massive 11,770 BTC Outflow from Major CEXs Including Coinbase Pro and Binance

According to the latest data from Coinglass, centralized exchanges...

Bitcoin Spot ETF Sees $2.214 Billion Net Inflow in U.S. as BlackRock Leads with $1.31 Billion

According to data from Farside Investors, the United States...

TRUMP Token Liquidity Pool Drains $6.77 Million in Major Withdrawal, Reports OnChain Lens

According to OnChain Lens data reported by COINOTAG News...

US Senate’s $4.2 Trillion Tax Plan Sparks Debate Ahead of Bitcoin Deadline

The U.S. Senate, under Republican control, has unveiled a...

XRP Tops Upbit’s KRW Market with 18.62% Share in $1 Billion Daily Trading Volume

According to CoinGecko data on June 28th, Upbit's trading...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img