Bonk Price Approaches Key Support, Another Bounce or 40% Correction?

BONK price plunged over 5% on Friday during U.S. trading hours as the crypto market’s mid-week recovery stalled. The lack of follow-up on the upside hints at a lack of conviction from buyers and a potential pullback to bottom support. Will the correction trend extend?

BONK Price Poised to Retest Major Support

BONK price notably recovered from the $0.0000155 to $0.0000218 high this week, registering a 40% jump. This sudden jump in most major altcoins followed the Bitcoin recovery above $60000 amid a market relief rally. 

In such scenarios, the Meme cryptocurrencies often emerge among the highest movers due to their volatile nature and receptivity to speculating trading. However, this surge doesn’t confirm a trend reversal compared to the intense downtrend in July.

Thus, the Solana-based meme coin BONK plunged back to the $0.000020 price level, and the market cap fell to $1.43 Billion.

A bearish crossover between the 50- and 100-day EMAs could renew the selling pressure and plunge the meme token to 16% to $0.000016, retesting the channel pattern support. The price below the daily EMAs (20, 50, 100, and 200) hints that the path to least resistance is down.

A potential breakdown below the lower trendline will accelerate the selling pressure, break the six-month pattern, and push the BONK price to $0.000012.

Conversely, the rising channel has consistently served as a prime accumulation zone for investors looking for discounted entry points. The last reversal from the lower trendline in April 2024 triggered a substantial 237% rally, pushing the price up to $0.0000445.

The daily Relative Strength Index (RSI) rebounded to 40%, accentuating the buyer’s attempt to retake control at this bottom support. Theoretically, this momentum indicator measures the speed and change of price movements, indicating whether an asset is overbought or oversold.

Therefore, the BONK price holds a high probability for another rebound from this dynamic support and market its sustainability in the current market correction. The post-reversal rally could uplift the coin value by $0.000034, projecting a potential growth of over 70%.