Bonk price suffered a deep reversal as the recent uptrend faded. The token, which is the largest coin in the Solana ecosystem, fell to $0.00004 on Wednesday morning, down from this month’s high of $0.0000598.
Crypto Analysts Expect Bonk Token to Rebound
Crypto experts believe that Bonk coin will rebound in the coming days. In an article X, Altcoin Sherpa opined that the coin will rally as the ongoing retracement fades.
https://twitter.com/AltcoinSherpa/status/1861174777810977227
Other analysts believe that the coin will soon rebound and retest its all-time high. One of the reasons mentioned is that it was the world’s first meme coin. Solana ecosystem and that it will always have demand.
Analysts also cite its strong volumes in the spot and futures market. Bonk saw almost $900 million in volume in the last 24 hours. Most of this volume was on exchanges like Binance, Coinbase, and Bybit. Higher volume is a sign that a coin is in demand by investors.
Learn more: PEPE and BONK Memecoins Reach New Highs, Following Dogecoin Uptrend
Another catalyst is that Bonk is deflationary as the number of coins removed from circulation increases. Data shows that over 129.32 billion BONK tokens have been burned and the hope is that 1 trillion coins will be burned soon.
Bonk Price Analysis: Is the Rally Over?
The daily chart shows that Bonk price peaked at $0.000059 last week and has now fallen by over 30%. This decline occurred as most cryptocurrencies plunged, with Bitcoin closing in on key support at $90,000.
The coin fell below two important support levels. It fell below $0.000047, its highest level on March 4 this year. Bonk also turned key support at $0.0000443, its May 20 high, into resistance.
On the positive side, Bonk price remains above the 50-day and 200-day exponential moving averages, which have recently formed a bullish crossover trend. This is a popular continuation model on the market.
Bonk also formed a cup and handle chart pattern, a popular bullish sign. This model is composed of an upper part followed by a rounded lower part. As such, there are signs that the current pullback is part of the handle.
This decline is therefore part of investors taking profits, which means that it has a chance of rebounding in the coming days. If that happens, the next benchmark to watch will be this month’s high at $0.000060.
A move above this level will increase the possibility of the coin moving to $0.0000755. This objective is estimated by first measuring the depth of the cup then extrapolating it from its upper surface. On the other hand, a decline below the support point at $0.000030 would invalidate the bullish view.