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$BONK, a Solana meme coin, was on the verge of a significant breakout that could have resulted in a 92% rally. The coin had been trading within a bullish pattern, nearing a potential breakout that could have propelled its price toward its all-time high of $0.00004800.
However, a sudden shift in investor sentiment and market behavior caused $BONK to miss this opportunity, leaving the token stuck in its downward trajectory.
$BONK Loses Big-Time
The Chaikin Money Flow (CMF) indicator had been observing an uptick since early September, signaling increasing capital inflows into $BONK. This was a positive sign, as it suggested that investors were becoming more confident in the meme coin’s potential. However, just as $BONK approached a breakout from the critical resistance at $0.00002400, the CMF began to show a downtick.
This shift in the CMF indicator indicated that investors were pulling back, causing $BONK to lose the momentum it needed to break through the resistance. The sudden change in sentiment played a pivotal role in the coin’s failure to capitalize on the potential rally, leaving it stuck below key resistance levels.
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The broader macro momentum for $BONK also presents challenges. $BONK’s correlation with Bitcoin has been steadily declining, currently standing at 0.48.
This low correlation is a bearish sign, as it indicates that $BONK is failing to benefit from Bitcoin’s recent recovery. Typically, altcoins with stronger correlations to Bitcoin can ride the wave of the crypto king’s rallies, but $BONK appears to be missing out.
Without a strong correlation to Bitcoin, $BONK lacks the external market support it needs to sustain a rally. This declining correlation could keep the meme coin subdued as it struggles to gain upward momentum independently of Bitcoin’s movements.
$BONK Price Prediction: Slow Moves Ahead
$BONK has been trading within a descending wedge since mid-May and was nearing a breakout this week. The pattern suggested a possible 92% rally upon breakout, potentially sending the coin back to its all-time high at $0.00004800. However, the failed breakout has dampened these expectations for the meme coin.
If $BONK fails to maintain its current support at $0.00002153, it could enter a period of consolidation above $0.00001732, further delaying any potential bullish momentum. The coin will need stronger bullish cues to make another attempt at a rally.
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However, if the broader crypto market turns bullish, $BONK could see a reversal in its fortunes. A breakout would be confirmed if the resistance at $0.00002748 is flipped into support, which would invalidate the bearish outlook and potentially spark a rally toward previous highs.