BONK Price Declines 1.65% to $0.000029 Amid Broader Crypto Market Rally

BONK Price Declines 1.65% to $0.000029 Amid Broader Crypto Market Rally

On Tuesday, the price of BONK dropped by 1.65% to $0.000029, despite a general upward trend in the broader cryptocurrency market. This market movement was supported by increased buying pressure, which helped lift Bitcoin’s price above $60,000, following the release of the US Producer Price Index (PPI) for the month. The PPI showed a 0.1% increase, coming in lower than market expectations. This lower-than-expected increase suggests that inflationary pressures may be easing more than anticipated, potentially leading the Federal Reserve to consider rate cuts in the near future. However, whether this recovery in the market will be sustained remains uncertain.

BONK Price Eyeing Retest of Key Support Levels

Since late July, BONK has experienced a sharp correction, with its price tracing a V-top reversal pattern on the daily chart. This bearish reversal has seen the asset’s value plummet from $0.0000339 to $0.00001785, marking a significant 47.2% loss.

Recently, however, the selling pressure has lessened for BONK, a Solana-based meme coin. Buyers have found support along the lower trendline of a channel pattern (marked in blue), which has been guiding a steady recovery trend within two parallel lines since February 2024.

As of the latest data, BONK is trading at $0.000019, bringing its market capitalization to $1.372 billion. While the broader crypto market is currently in a sideways trend, BONK could continue to find support along the ascending trendline, potentially regaining bullish momentum.

During this consolidation phase, BONK has also seen a significant increase in Open Interest (OI) over the past week. According to data from Coinglass, OI has risen from $5.7 million to $6.5 million, representing an approximate 14% increase. This rise in OI indicates growing market confidence and suggests that BONK may be gearing up for a notable price movement soon.

The Moving Average Convergence Divergence (MACD) indicator, with its blue and orange lines nearing a bullish crossover, could further accelerate any upward momentum, potentially driving the coin’s price 30% higher to challenge a descending trendline at $0.000024.

However, the overarching downtrend, coupled with trading below key daily Exponential Moving Averages (20, 50, 100, and 200-day), indicates that the path of least resistance may still be downward. A break below current levels could strengthen the sellers’ grip, pushing the altcoin down by 38% to seek support around $0.000012.