Solana meme coin BONK faced a 12.5% drop to $0.0000214 after failing to break past key resistance at $0.00002400, missing a potential 92% rally.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Solana meme coin BONK BONK $0.000016 24h volatility: 11.2% Market cap: $1.23 B Vol. 24h: $198.05 M has come under significant selling pressure recently amid the broader market correction dropping from a major breakout point that could have otherwise resulted in a strong 92% rally. However, a major shift in investor sentiment has caused BONK to miss the opportunity thereby pushing the BONK price lower by 12.5% to $0.0000214.
Since early September, Solana meme coin BONK has been seeing increasing capital inflows as per the Chaikin Money Flow (CMF) indicator. This was a major bullish indicator suggesting that investors were confidently eyeing a BONK price surge ahead.
However, as BONK neared a breakout above the key resistance level of $0.00002400, the Chaikin Money Flow (CMF) indicator started to show a downward trend.
With the broader crypto market sentiment turning bearish, investors started to pull back causing the BONK price to lose momentum and break past beyond the crucial resistance.
Photo: TradingView / BeInCrypto
Additionally, the broader macro sentiment for BONK also shows major challenges ahead. In recent weeks BONK’s correlation with Bitcoin BTC $93 262 24h volatility: 0.6% Market cap: $1.85 T Vol. 24h: $31.53 B has been on a decline, currently standing at 0.48. This low correlation is a bearish indicator showing that BONK is failing to benefit from the Bitcoin price recovery. Several altcoins with a stronger correlation to BTC have already made the move in September.
With a weak correlation to Bitcoin, BONK lacks the broader market support necessary to maintain a rally. This declining connection may limit the meme coin’s ability to gain upward momentum, as it struggles to rise independently of Bitcoin’s movements.
Photo: TradingView
For a long time, the BONK price has been trading within a descending wedge pattern and was preparing for a breakout beyond this. Any possibility of a breakout above this wedge could have pushed the BONK price higher by 92% taking it all the way to its all-time high at $0.00004800. However, the failed breakout dampened the expectations.
If BONK fails to hold its support at $0.00002153, it may enter a consolidation phase above $0.00001732, further postponing any potential upward movement. Stronger bullish signals will be necessary for the coin to make another attempt at a rally.
Photo: TradingView
If the broader crypto market reverses its trajectory, the BONK Price could see a reversal in its fortunes. For now, BONK first needs to give a breakout above $0.00002748 while flipping this resistance into support. this would help the Solama meme coin break past its bearish zone and kickstart a rally toward its previous highs.
Along with BONK, the broader meme coin sector is facing a strong sell-off with PEPE PEPE $0.000009 24h volatility: 1.3% Market cap: $3.67 B Vol. 24h: $730.82 M and WIF WIF $0.55 24h volatility: 4.0% Market cap: $550.92 M Vol. 24h: $278.07 M also collapsing by a similar magnitude. The actual effect of the Fed rate cut and liquidity infusion still needs to kick in for the altseason to begin.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
