Bonk (BONK) Bounces at Key 0.618 Fibonacci Support Zone

Bonk (BONK) has retreated into a high-confluence support zone that aligns with the 0.618 Fibonacci retracement level, the daily high time frame (HTF) support, and a key point of control on the volume profile. This area has emerged as a critical juncture where the asset must either stabilize and form a bullish continuation or risk a deeper correction. Recent price action shows a clear rejection at the daily swing high, as the asset failed to close above this resistance level, shifting momentum in favor of a pullback [1].

The current support cluster is reinforced by multiple technical indicators. The 0.618 Fibonacci level is historically significant in corrective patterns and often acts as a reversal point. Simultaneously, the HTF daily support has previously functioned as a base for bullish rotations. The confluence of these levels with the volume point of control adds structural significance, making this area a high-probability support level [1].

From a market structure perspective, the ability of Bonk to hold this zone is crucial. A successful defense would allow the formation of a higher low within the ongoing bullish trend of higher highs and higher lows. This would maintain the larger trend and potentially trigger a rotation back toward the swing high. Conversely, a breakdown would signal the end of the current bullish momentum and increase the likelihood of a move toward the value area low or even the swing low, initiating a more prolonged correction [1].

Bullish signs are emerging from the volume profile, with increased buying interest observed at this level. This suggests potential accumulation and growing confidence among buyers. If this trend continues and the price remains stable, the probability of a reversal and a subsequent move toward the swing high increases. A successful rebound would confirm this as a corrective low and reinforce the bullish case [1].

Traders are now closely monitoring whether this key support area can hold. A successful defense could set the stage for a rally toward the swing high, while a breakdown may lead to a retesting of lower levels. The coming days will be critical in determining the direction of the trend and the strength of the support cluster [1].

Source: [1] Bonk corrects into critical support zone backed by volume and fibonacci confluence (https://crypto.news/bonk-corrects-into-critical-support-zone-backed-by-volume-and-fibonacci-confluence/)