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Bonk ($BONK) closed at a multi-month high of $0.000041 on May 28, and its price has since fallen to form a descending channel.
With its price trending toward the lower line of this channel, the meme coin is poised to breach support and fall further.
Bonk Trades Under Key Moving Average
A descending channel is a bearish signal. When an asset’s price trends within this channel, it consistently moves lower, creating a series of lower highs and lower lows.
The upper line of the channel forms resistance. In $BONK’s case, this is $0.000044. The lower line represents support; for $BONK, this is $0.000023. Since the meme coin began its descent from the $0.000041 price mark, its value has dropped by 36%. At press time, $BONK trades at $0.000026.
The meme coin trades below its 20-day Exponential Moving Average (EMA), which tracks $BONK’s average price over the past 20 days and emphasizes its recent prices.
When an asset trades below this key moving average, it confirms that it is in a downtrend, as recent prices are lower than the average of the past 20 days.
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$BONK’s daily chart readings showed that it has traded below the 20-day EMA since June 6. It is key to point out that persistent trading below the 20-day EMA can indicate sustained selling pressure, which might attract more sellers or cause current holders to sell in fear of further declines.
$BONK Price Prediction: Why the Bulls Must Defend the Support Level
The bearish bias trailing $BONK is confirmed by its negative weighted sentiment. This on-chain metric has returned only negative values since May 30. At press time, it is -0.86.
Bonk Weighted Sentiment Source: Santiment
This metric measures the overall market sentiment about an asset. It, however, goes beyond a simple positive/negative count for a particular asset. It considers both the sentiment strength and the volume of mentions.
When its value is negative, as in $BONK’s case, it suggests a high volume of discussion around the asset, most of which express negative opinions and lack confidence.
If this sentiment continues to trail $BONK, and buying pressure keeps waning, the bulls may be unable to defend support, causing it to trade at $0.000021.
However, if sentiment improves and buying momentum skyrockets, the altcoin may rally toward $0.000027.