BONK’s 50% Decline Lingers as Key Resistance Blocks Recovery

Key Takeaways

• BONK has lost 50% of its value in the last 60 days, struggling to recover amid a bearish market.
• The memecoin remains stuck in a falling channel, with repeated rejection at $0.000015 resistance.
• RSI and MACD indicate bearish momentum, while a bearish EMA crossover suggests further downside.
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In the last 60 days, BONK, one of the top memecoins in Solana, has lost 50% of its value. This decline aligns with the long-standing hawkish market condition.

However, amid the market’s instability, some cryptos have recovered to notable heights. But it’s not the same for BONK, which was one of the top-performing cryptos of 2024.

In this analysis, CCN explains why BONK is stuck and reasons the trend could remain the same for a while.

BONK Fails to Break $0.000015

As of this writing, BONK’s price is around $0.000012. This came following the formation of a falling channel from its peak in January.

On the daily chart, BONK had previously retested the resistance at $0.000015 while aiming to break out. However, that attempt faced rejection and put the descending pattern back intact.

The price action is also reflected in the Relative Strength Index (RSI) reading. Yesterday, April 1, the RSI tried to break above the neutral line. However, that did not happen as the reading dropped.

This drop in the RSI reading indicates bearish momentum around BONK. If the rating fails to rise above the signal line, BONK’s price might struggle to break the $0.000015 resistance.

BONK Price Analysis: Bearish Setup Strengthens

Furthermore, the weekly chart also presents a similar outlook. As seen below, BONK’s price has failed to exit the downtrend since November 2024.

Amid this position, the Moving Average Convergence Divergence (MACD) has turned negative, indicating bearish momentum. The same MACD shows a bearish crossover as indicated by the Exponential Moving Average (EMA) position.

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For context, a bearish crossover occurs when the longer EMA rises above the shorter EMA. As of this writing, the 26 EMA (orange) has climbed above the 12 EMA (blue).

Should this trend continue like that, BONK’s price might not break above the falling channel anytime soon. However, a rise in buying pressure might allow the memecoin to break above this trend.

• Bearish scenario: Should indicators like the MACD remain negative, BONK might fail to rise above the 0.236 Fibonacci level, which is crucial for the token. In that case, the memecoin’s value might decline toward $0.0000088.
• Bullish scenario: To overturn the cryptocurrency’s recent trend, BONK does not just have to flirt with the $0.000015 resistance. Demand for the token has to be intense to break above it. If that happens, BONK’s price might retest $0.000020.

Should the broader market condition improve, the token’s move could be higher. In that case, BONK might rally toward $0.000028.