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Solana meme coin BONK faced a 12.5% drop to $0.0000214 after failing to break past key resistance at $0.00002400, missing a potential 92% rally.
Key Notes
BONK's declining correlation with Bitcoin, currently at 0.48, is limiting its ability to benefit from broader market recoveries.BONK risks entering a bearish phase if it fails to maintain support at $0.00002153.A breakout above $0.00002748 is needed to reverse its bearish trajectory, but broader market conditions would be crucial to future rally.Solana meme coin BONK BONK $0.0000 24h volatility: 6.3% Market cap: $1.51 B Vol. 24h: $741.01 M has come under significant selling pressure recently amid the broader market correction dropping from a major breakout point that could have otherwise resulted in a strong 92% rally. However, a major shift in investor sentiment has caused BONK to miss the opportunity thereby pushing the BONK price lower by 12.5% to $0.0000214.
Since early September, Solana meme coin BONK has been seeing increasing capital inflows as per the Chaikin Money Flow (CMF) indicator. This was a major bullish indicator suggesting that investors were confidently eyeing a BONK price surge ahead.
However, as BONK neared a breakout above the key resistance level of $0.00002400, the Chaikin Money Flow (CMF) indicator started to show a downward trend.
With the broader crypto market sentiment turning bearish, investors started to pull back causing the BONK price to lose momentum and break past beyond the crucial resistance.
Photo: TradingView / BeInCrypto
With a weak correlation to Bitcoin, BONK lacks the broader market support necessary to maintain a rally. This declining connection may limit the meme coin’s ability to gain upward momentum, as it struggles to rise independently of Bitcoin’s movements.
Photo: TradingView
For a long time, the BONK price has been trading within a descending wedge pattern and was preparing for a breakout beyond this. Any possibility of a breakout above this wedge could have pushed the BONK price higher by 92% taking it all the way to its all-time high at $0.00004800. However, the failed breakout dampened the expectations.
If BONK fails to hold its support at $0.00002153, it may enter a consolidation phase above $0.00001732, further postponing any potential upward movement. Stronger bullish signals will be necessary for the coin to make another attempt at a rally.
Photo: TradingView
Along with BONK, the broader meme coin sector is facing a strong sell-off with PEPE PEPE $0.0000 24h volatility: 6.5% Market cap: $3.78 B Vol. 24h: $2.26 B and WIF WIF $2.14 24h volatility: 8.5% Market cap: $2.14 B Vol. 24h: $1.18 B also collapsing by a similar magnitude. The actual effect of the Fed rate cut and liquidity infusion still needs to kick in for the altseason to begin.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
