- Bonk failed to strike the supply region and faced sharp rejection.
- Sellers are looking to regain dominance and are eyeing a selloff.
The Bonk (BONK) has experienced rejection from the supply region and delivered a fake breakout this week.
Investors hoped that the memecoin would register a rounding bottom formation breakout and outperform ahead. Meanwhile, the sellers did not lose strength and pushed bulls from there.
Bonk crypto price has witnessed a notable rise of over 80% and reached the top of $0.00004000. Somehow, the memecoin failed to sustain gains and dropped over 22% this week, replicating the profit booking.
At press time, the Bonk crypto (BONK) price traded at $0.00003255 with an intraday drop of 6.10%, reflecting neutrality on the charts.
Nonetheless, the market cap fell to $1.34 Billion, and the trading volume dropped over 45% to $225.12 Million, signifying a notable decline in the past 24 hours.
Are Whales Dumping BONK?
Amidst the notable uptick of 85% this month, BONK faced profit booking at the highs (rejection).
However, crypto analysts still guide their positive guidance and articulate that the memecoin has the potential to outperform ahead and may cross the supply trajectory of $0.00004000 soon.
Source: TradingView
This week, the price action delivers a negative outlook, as the memecoin has breached its upward trendline support mark and dragged below it, which might lead to a short-term retracement ahead.
A break and close below the $0.00003000 would accelerate the selloff, which drags the BONK price toward the $0.00002780 mark.
Now, the memecoin has taken support on the 20-day EMA and struggles to hold it. Still, the RSI curve stays above the midline region, but a negative crossover was noted.
this is the weekly chart for $bonk
— SBJ (@SBJsol) May 25, 2024
lawdd
were going so much higher 😳😳 pic.twitter.com/M1SuD7eefQ
Source: X
Sudden Drop in Volatility and Sentiment: What Does it Reflect?
Following the sharp rejection and notable profit booking, key metrics have turned negative, signifying the change in sentiment for the memecoin.
The price volatility resembles a sharp decline of over 35% to the 0.023 mark, highlighting the decline in buying interest.
Source: Santiment
Similarly, the weighted sentiment data reflects a harsh reversal – it flipped over 65% to -0.491, slipping below the midline, demonstrating a negative outlook.
Social Sentiments Look Negative
Following the price rejection, the social metrics were also impacted, and a fall was noted. The Social dominance value dropped over 54% to 0.353%, revealing a drop in the activity and discussion on the social platforms this week.
Source: Santiment
Similarly, X followers data highlights a harsh decline of over 450% to 1132, confirming a negative outlook.
Futures OI Data Replicate Long Unwinding Activity
Following the price rejection at the highs, the buyers looked in a dilemma and started to unwind their positions.
Source: CoinGlass
The Open interest (OI) value dropped over 4.30% to $16.60 Million in the last 24 hrs, revealing long unwinding activity.
The immediate support levels for BONK are $0.00003100 and $0.00003000, whereas the key upside hurdle is around $0.00003400, followed by $0.00003600
Conclusion
Bonk retested the support 20-day EMA mark and signifies signs of profit booking in the last sessions. Additionally, the memecoin might stretch the retracement move in the next sessions.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.