BONK Price Tanks 12.5% after Failing to Secure 92% Rally, What’s Next?

Updated on Oct 3, 2024 at 11:09 am UTC by · 3 mins read

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.

Solana meme coin BONK BONK $0.000016 24h volatility: 13.0% Market cap: $1.25 B Vol. 24h: $226.97 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 $94 570 24h volatility: 2.2% Market cap: $1.88 T Vol. 24h: $30.46 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

BONK Price Action Ahead

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: 4.6% Market cap: $3.74 B Vol. 24h: $764.90 M and WIF WIF $0.62 24h volatility: 19.0% Market cap: $625.11 M Vol. 24h: $360.11 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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