Bonk Stalls Near The Lows: A Recovery Or Another Price Failure?

• Despite the recovery in several altcoins, Bonk price stalled near the lows and is struggling for a recovery.
• The transaction volume dropped by over 15% indicating fading interest among investors.

While Bitcoin and several altcoins headed for a recovery in the second week of September. On the other side, Bonk struggling for a firm footing near the lows. Earlier, Bonk noted a nearly 228% rise in the 1st half of 2024 that took the price to a new high.

However, the bears attacked in the second half, erasing most of the gains. Despite strong gains in the 1st half, the crypto seems to be in trouble at the moment and may be poised for further losses.

At the time of writing, Bonk was trading close to $0.0000169 with a mild intraday loss of 0.97%. It ranks 58th in the crypto space with a live market capitalization of $1.19 Billion.  As the bulls find it difficult to recover despite recovery in the broader markets, bears may try to widen the losses in the short term.

Bonk Transaction Volume & Volatility Analysis

Bonk is the first dog-themed coin on the Solana blockchain. Nearly half of the total supply was distributed to the Solana community. Launched in December 2022, BONK is a meme coin that aims to bring back liquidity to Solana-based DEXs.

It has a total supply of 92.87 Trillion BONK tokens, out of which nearly 70.3 Trillion tokens are in circulation at present. Fully diluted market cap stands at $1.566 Billion.

Moreover, the volume analysis indicated a drop of nearly 15.5% in demand in the last 24 hours. The intraday trading volume was $79.04 Million.

As per the data obtained from Santiment, the volatility curve was in a declining trend, indicating reduced volatility in the asset’s price. The transaction volume as well as volatility was lower indicating fading investors’ interest in the crypto.

Can Bulls Struggle Result in a Positive Trend Shift

The Bonk Bulls seemed to be struggling for a firm footing near the demand zone. The bears control the trend, which is evident as BONK stalled at the lows. Also, the price forms a lower high structure over the daily chart which may invite more sellers over a short-term rebound.

Bonk price hovers below all the key Exponential moving averages which are also serving as a dynamic resistance in the short term.

On the lower side, any breakdown would re-establish the formation of another lower low and the downtrend may follow, raising concerns among the investors. Currently, $0.0000157 is the critical support, which. if breached may trigger a meltdown.

Moreover, on the way to recovery, Bonk may face resistance from key EMAs to recent swing highs of the $0.000022 level. The bulls need more strength and volume to counter the selling pressure.

At the time of writing, the MACD indicator line and signal line were placed below the zero line indicating a selling pressure in domination. Also a bearish crossover between both the lines was about to happen indicating a worse scenario ahead for the investors.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.