- BONK maintains a higher timeframe bullish structure, but is not likely to rally anytime soon.
The liquidation charts signaled further losses were likely.
The price of Bonk (BONK) nearly returned to its previous levels following the late February to early March surge. It is now below the mark set by the 78.6% Fibonacci retracement line.
Based on current circumstances, the meme coin was trending towards the lower end of a range that had been frequently visited in January.
A recent article on AMBCrypto noted that the token’s important indicators were decreasing. Lately, selling forces have had significant influence. Potentially, where can the buyers stem these losses?
BONK might need a lot more time to recover
Two months ago, a rally occurred which left the $0.00001 mark as a significant low point on the daily chart. If the price falls below this level, it may signal a prolonged downward trend.
Yet, the lower timeframes chart showed that the trend has been bearish throughout April.
If the price of an asset failed to rebound above the $0.0000293 mark, it indicated that a decline was imminent. The 78.6% Fibonacci retracement level, located at $0.0000188, was anticipated as a potential support area for the bulls to prevent further downward movement.
Instead of reaching that point, the cost seemed destined to dip back down towards the lower end (purple) of the price range, as seen in January and February.
This could see the meme coin consolidate for a long time before it is ready for the next rally.
The key support zone’s failure drove BONK lower
Realistic or not, here’s BONK’s market cap in BTC’s terms
During the recent price drop, the significant pool of buyers and sellers at $0.0000185, which provided crucial liquidity, was shattered by the intense selling wave and mandatory liquidations. This resulted in a chain reaction of more sell orders being triggered, leading to further declines in price.
On the 13th of April, an overwhelming number of sell orders in the market caused BONK‘s price to drop down to $0.0000122. The next significant level of liquidation was found at $0.00000917, indicating a potential bearish trend.
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2024-04-17 15:03