BONK, a Solana-based memecoin, recently consolidated within a falling wedge pattern. BONK price underwent a severe reversal from the supply zone of the $0.00004200 mark.
It has corrected over 60% in the last three months and conveyed a significant bearish trend.
The token has lost over half its value from the 52-week high. It has continued to form the lower lows and struggled at the crucial pivot of $0.00001600.
The token displayed a losing streak this week with over 15% price decline. Notably, the memecoin price sailed below the 200-day EMA mark and struggled to attain a bullish reversal.
BONK Partnered with Baseball United
Baseball United has announced that Bonk (BONK) is the presenting partner for the next baseball season, 2024-25. This partnership aims to break the barriers between sports and digital currency,
This endorsement could take the league and the crypto asset to a different level of recognition.
BONK Price Action Analysis
For the past three months, the memecoin has been unable to hold momentum and traded under bearish influence. A bearish crossover was noted, and the token fell below the key moving averages.
Going forward, the token reached the edge of its demand zone around $0.00001500. Until the memecoin held the mark, the further selloff could not hit the bulls.
However, if it breaches, the next bearish leg would settle around the $0.00001300 mark in the short term.
When writing, the BONK token traded at $0.00001752 with an intraday drop of 5.20%, reflecting bearishness on the charts.
With a market cap of $726.93 Million, the memecoin secured the 54th rank and had a total supply of 99.19 trillion.
Have On-Chain Metrics Stayed Bearish or Turned Bullish?
Despite the price drop of over 5% intraday, the price volatility line declined. It noted lower selling pressure with a lack of volume participation. That might be a sign of bottoming out, and the memecoin may find support here.
Amid the price decline, the investors have maintained low conviction for BONK, as the curve is below the zero line. It meant a negative sentiment for the memecoin.
The lack of follow-up on the upside hinted at a lack of conviction from buyers and a potential pullback to bottom support.
During last week’s market recovery in most crypto altcoins, BONK bulls tried to gain momentum. However, they failed to bisect the 200-day EMA barrier and capped the downside.
The Funding Rate Looks Negative
The Bonk memecoin’s funding rate was at -0.0120% at press time. Generally, a negative funding rate value means most traders are taking short positions, a sign of a bearish trend.
Furthermore, the futures Open Interest (OI) depicts fresh short additions activity, as the OI spiked over 7% to $6.56 Million in the past 24 hours.
If the bearish trend continues, the memecoin might face challenges crossing the 200-day EMA mark near $0.00002000. It could gain further ahead.
The prompt resistance was placed around $0.00001860, followed by $0.00002100.
At the same time, the immediate support zone was near $0.00001650, followed by the $0.00001580 mark.
