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Solana memecoin BONK extended its bearish retracement by breaking the key support level of $0.00002508. This continued the initial price correction from the $0.00002919 resistance, as sellers looked to dominate in the short term.
In the wider market, Bitcoin (BTC) dropped from $64.7k to $62.3k, representing a 3.78% drop in price. The selling pressure across the crypto market was reflected in a decline in the global crypto marketcap.
The market cap decreased by 3.16% over the past 24 hours, translating to a 10.63% decrease in the total crypto market volume. This was according to data from Coinmarketcap.
Price action swings bearish
The daily timeframe showed that BONK’s bullish momentum peaked at the $0.00003 price zone before successive bearish candles swung the price action in favor of sellers.
This was reflected in the negative reading of the Chaikin Money Flow (CMF), as capital outflows rose alongside the price dip. Similarly, the Relative Strength Index (RSI) registered an increase in selling pressure with the indicator signaling a bearish trend on the four-hour timeframe.
With BONK trading at $0.0000235 as of the time of writing, traders can short the token with a 15% profit target at the next support level of $0.00002. This would be consequent on price breaking below the previous significant bullish candle from the nearby support.
Alternatively, a bullish price reversal would have to contend with the new resistance at $0.0000250 before any gains can be made at the $0.00003 price zone. Also, a bullish reversal would depend on an uptick in trading volume and an injection of new capital.
Price levels to consider:
Current Market Price : $0.0000235
Bearish target: $0.00002 (15% gains)
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.