Market Overview: BONK/USDT at a Crucial Support Level

Summary
• Price retreated from a morning peak and tested prior support, failing to hold above 1.205e-05.
• Volume surged during the breakdown, confirming bearish momentum with no counter-trend accumulation.
• RSI and MACD signaled oversold conditions, suggesting a potential rebound near 1.17e-05.
• Bollinger Band contraction late in the session hinted at a possible directional breakout.

Price and Trading Activity

Bonk/Tether (BONKUSDT) opened at 1.219e-05 and peaked at 1.25e-05 before falling to a 24-hour low of 1.15e-05. The session closed at 1.161e-05. Total volume reached 1.48e+12, with a notional turnover of 17.95 million USD.

Structure and Momentum

Price formed a bearish engulfing pattern as it broke below key support at 1.205e-05, triggering a sharp decline. The 20/50 EMA on the 5-minute chart confirmed the downward bias during the breakdown. RSI entered oversold territory near 28, suggesting a potential short-term rebound, while the MACD remained bearish with a negative histogram.

Volatility and Volume

Bollinger Bands narrowed significantly during the late hours, signaling a potential breakout. Volume spiked during the breakdown and remained elevated throughout the selloff, suggesting conviction in the bearish move. Notional turnover surged during the session’s closing hours, aligning with price action.

Key Levels and Retracements

Support now rests at 1.15e-05, with a 61.8% Fibonacci retracement of the morning rally aligning closely. A bounce from this level could trigger a 38.2% retracement to 1.17e-05, offering potential for a short-covering rally.

Outlook

If BONK/USDT holds above 1.15e-05, a recovery toward 1.17e-05 appears likely, but a break below that could extend the correction. Traders should remain cautious for further volatility ahead of the next 24-hour cycle.