BONK Slows Down as Key Fibonacci Levels Signal Potential Breakout

Key Takeaways

• BONK broke out of a descending wedge, reaching $0.00005906.
• The price retraced, consolidating within a descending channel.
• A breakout above $0.00003823 (0.5 Fibonacci retracement) could confirm bullish momentum.

BONK finds itself at a pivotal juncture following a sharp rally and subsequent retracement.

After breaking out of a descending wedge to reach $0.00005906 in late November, the token has since entered a period of consolidation within a descending channel.

As analysts eye key Fibonacci levels, the market awaits signals of a potential breakout or further decline, setting the stage for the next significant move.

BONK Price Analysis

The BONK daily chart shows a breakout from a prolonged symmetrical triangle, which triggered a sharp rally to the 0.000059 level on Nov. 20.

The price has since retraced significantly, consolidating within a descending channel while testing the 0.786 Fibonacci retracement level at 0.000026 as support.

This level is critical for maintaining the bullish structure.

The price recovered since its Dec. 20 low but failed to overcome the 0.618 retracement, indicating possible accumulation before a breakout or deeper retracement.

The Relative Strength Index (RSI) indicates a neutral trend, leaving room for either direction based on volume and market sentiment. 

However, it got close to being oversold on Dec. 20, which could have been the sign that the following recovery is the next starting uptrend.

If this is true, a breakout should occur above the descending channel resistance, further validating the assumption. 

If the 0.618 retracement support breaks, the price could drop further to the 0.786 Fibonacci level at 0.00002632.

On the upside, breaking the descending channel resistance and reclaiming 0.00003823 (0.5 Fibonacci) would confirm renewed bullish momentum.

BONK Price Prediction 

The 1-hour chart shows BONK  consolidating within a descending channel after its sharp rally to $0.000059. Currently hovering near the 0.618 Fibonacci retracement level ($0.00003332), the price has formed a potential triangle pattern, with its upper boundary acting as resistance.

As the triangle pattern approaches its resolution, two scenarios emerge: A breakout above the descending channel resistance and $0.00003823 (0.5 Fibonacci retracement) could confirm the start of a new upward wave, targeting $0.00004315 (0.382 Fibonacci extension) and $0.00005906 (previous high).

A failure to hold support at $0.00002632 (0.786 Fibonacci retracement) could result in a decline toward the $0.00001740 level, invalidating the bullish scenario.

Key Levels to Watch:

• Immediate support: 0.00003332 (0.618 Fibonacci retracement).
• Critical support: 0.00002632 (0.786 Fibonacci retracement).
• Immediate resistance: 0.00003823 (0.5 Fibonacci retracement).
• Major resistance: 0.00004315 (0.382 Fibonacci extension) and 0.00005906 (previous high).
• Bearish target: 0.00001740 (1.0 Fibonacci retracement).