BONK breaks key support as 23% decline looms with bearish indicators intensifying

BONK has recently broken below a key support level at $0.00002393, raising concerns about a potential 23% decline in its price. This move has intensified bearish sentiment, as technical indicators and liquidity trends suggest further downward pressure. The breakdown has positioned BONK as one of the leading decliners on the market, with CoinMarketCap reporting an 8% drop in the past 24 hours. Analysts warn that the token could continue its decline toward the next support level at $0.00001835 if buyers fail to intervene [1].

The breakdown of the critical support level marks a significant shift in BONK’s short-term trajectory. Weeks of gains are now at risk of being erased, and with the support level failing to hold, the token’s path remains uncertain. AMBCrypto’s analysis indicates that further losses cannot be ruled out in the coming days, particularly as the breakdown could trigger a broader sell-off in the market [1].

Technical indicators are currently reinforcing the bearish outlook. The Money Flow Index (MFI) is at 50.97, just above the neutral threshold of 50. A drop below this level could signal increased outflows and accelerate the downtrend. Meanwhile, the Relative Strength Index (RSI) has fallen to 39.61, indicating fading bullish momentum and confirming that sellers are currently dominating buyer activity [1].

Off-chain data also shows a divergence in investor behavior, with bearish and bullish positions appearing in balance. However, liquidity remains a key concern, as outflows have been increasing. The Open Interest-Weighted Funding Rate shows a declining trend, suggesting a rise in short positions and a weakening of long-side dominance. If this metric turns negative, it could further intensify BONK’s decline in the coming weeks [1].

Despite the bearish indicators, some signs of accumulation have emerged. CoinGlass data reveals that $2.55 million worth of BONK has been purchased in the last 24 hours, with inflows increasing over the past three days. This buying activity could help moderate further losses, especially if buyers continue to accumulate on weakness. Continuous inflows may also increase the likelihood of a rebound, providing a buffer against massive sell-side pressure [1].

Market observers are closely watching the next support level at $0.00001835, which could act as either a floor or a trigger for further declines. If buyers step in to defend this level, it could signal a potential reversal in sentiment. However, if this level also fails, the token may face a deeper correction in the short term. The coming sessions will be crucial in determining whether BONK can stabilize or if the bearish trend will continue unabated [1].

The broader cryptocurrency market is also experiencing shifts in liquidity and positioning. With Bitcoin’s market valuation at CA$3.33T, the balance between buyers and sellers remains fluid. A 23% shift in buyer activity and a 10% change on the seller side highlight the dynamic nature of the market. These movements underscore the importance of order flow and liquidity in shaping price action, especially for tokens like BONK that are sensitive to sentiment and position changes [1].

For BONK, the immediate challenge lies in maintaining enough buying interest to prevent a rapid descent. A successful defense of key support levels could provide a much-needed catalyst for a rebound, while a continued decline may force a reevaluation of the token’s appeal and long-term viability. Investors are being urged to monitor key levels and indicators, as the next few weeks will be critical in determining BONK’s short-term performance and market confidence.

As the situation continues to develop, market participants must remain adaptable and informed. The cryptocurrency market is known for its rapid and unpredictable movements, and BONK’s current trajectory is a clear example of this volatility. Whether buyers can halt the 23% decline or not, the coming period will be instrumental in shaping the token’s future and its position within the broader digital asset landscape [1].

Source:

[1] BONK slips below key support: Can buyers stop a 23% decline? https://ambcrypto.com/bonk-slips-below-key-support-can-buyers-stop-a-23-decline/

[2] title2.............................(https://www.binance.com/en/square/post/28481988443818)