Is This The Conclusion of BONK? Technical Analysis Provides Cautionary Indicators
BONK, the Solana meme token, finds itself in a captivating phase of its journey. The initiative boasts a robust community and has enjoyed a 50% pump over the last month. Recently, BONK has partnered with Bravo Ready games, achieving a daily revenue of $1.72 M. For several days this month, it was also recognized as the most purchased project by savvy investors, though a technical analysis indicates some contrasting elements.
I firmly believe $BONK is on the verge of achieving MASSIVE new highs this year
Best Solana beta + most exceptional marketing team + significant normie interest
My bags are completely FILLED pic.twitter.com/jLicOrVAHC
— champ
(@champtgram) May 28, 2025
Individuals like Champ believe there’s still profit potential in the token. He highlights some solid fundamentals as well. I can’t claim my technical analysis is infallible. However, it’s crucial to evaluate various scenarios, even if the long-term forecast suggests a new all-time high.
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BONK: Rising or Falling? Insights from Technical Analysis
(BONKUSD)
The BONK chart is viewed on the Weekly timeframe. For convenience, I’m using 1000BONKUSDT on Bybit. Let’s begin with simple moving averages and the market structure. We observe a substantial spike at the close of 2023.
Most of 2024’s price range was utilized, and this year it dipped below its prior low (orange line), with the last three candles bouncing back from that level, aligning with MA50. The two lows of this upper range are pegged at $0.0095, marking a vital price floor level.
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(BONKUSD)
Next, we will investigate the Daily timeframe for our analysis. Here, the BONK price fluctuates around the Moving Averages. This month, it fell below MA200 and tested its lower boundary twice, both instances met with resistance.
For an upward movement to materialize, it must reclaim that level. MA50 and MA100 serve as potential supports that sit slightly above the $0.0095 threshold. What could be unsettling (or exhilarating) for traders is the vast empty area following the huge surge at the end of 2023.
Final Thoughts on BONK’s Price Movement
(BONKUSD)
Lastly, we will examine the 4H chart. Here, MA50 and MA100 resisted the price. It is now trending below MA200. Revisit the RSI levels from the earlier charts compared to this one now. On the Weekly, it appears to long-term holding the potential for either movement. It remains within the bullish territory daily, but the rejection from MA200 and the descent below it on the 4H timeframe could present a favorable risk-reward scenario for a short position. Although the fundamentals remain strong, there are moments when the price may pull back, and it might be that time for BONK.
Exercise caution and protect your capital from other traders!
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Is This The End of BONK? Technical Analysis Issuing Cautionary Signals
- Price has been within the upper range for a year – may indicate accumulation or distribution
- RSI may need further cooling
- Possible downturn to $0.0095 or lower
- Needs to regain MA200 on 1D for breakout
The article Is This The End of BONK? Technical Analysis Gives Warning Signs first appeared on 99Bitcoins.
