BONK Price at Risk of Losing 180-Day Support as Traders Seek More Discount

BONK price recorded an 8% jump on Tuesday, witnessing a short relief rally from a recent market sell-off. A sudden surge in buying pressure followed Bitcoin’s sustainability above $50000, while the total crypto market surged 8.7% to hit $1.95 Trillion. However, most of the major altcoins are far from the bottom as bearish market sentiment and recession fear persist among traders.

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BONK Price Teeters at Major Support

In the last three weeks, BONK price has faced intense selling pressure, evident from a sequence of red candles on the daily chart. The bearish turnaround plunged the asset from $0.000035 to a low of $0.000015 on Monday, registering a 54% loss.

Mirroring recent price corrections, the BONK coin has experienced a notable decrease in open interest since late July. According to Coinglass, the OI data fell sharply from $13 million to $5.7 million, accounting for a 55% loss. This decline highlights a potential drop in market liquidity and investor commitment to BONK.

The BONK price reverted to $0.0000196 in today’s market uptick, seeking sustainability above the channel pattern’s support trendline. The daily time frame chart shows the Solana-based meme coin riding a steady recovery trend since February 2024, resonating with two parallel trendlines.

However, the derivative market data reveals a negative (OI)-Weighted Funding Rate of -0.028, indicating that short sellers are paying to maintain their positions, which implies their expectation of further price declines.

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Additionally, the Average Directional Index (ADX) has surged to 19%, indicating that sellers are emerging as the dominant force in the current market.

Therefore, a potential breakdown below the support trendline will further strengthen the selling grip and drive a 28% fall to test $0.000012 support.

On the contrary, if the BONK price manages to sustain above the lower trendline, the buyers could develop a reversal pattern to invalidate the bearish thesis. A potential rebound could uplift the asset by over 30% to target $0.0000266.