The Bonk price has seen a deeper retracement today, down 3.57%, contributing to the 3.04% average decline among meme coins. However, indicators point towards building bullish momentum and a potential breakout.
Today’s dip pushes BONK further into its recent rutt, now down 5.38% since last Thursday, markedly underperforming the growth seen by other notable altcoins over the same period.
Despite disappointing price action, trader interest in BONK appears to be increasing. Over the past 24 hours, the meme coin’s trading volume has surged by 29.45%, reaching $130.35 million.
Bulls Attempt Bonk Price Recovery
BONK’s Moving Average Convergence/Divergence (MACD) highlights the growing bullish bias toward the coin.
BONK/USDT 1D Chart. Source: Binance.Notably, the MACD line (blue) is currently converging towards the signal line (orange) in an uptrend, an indicator of a potential shift in momentum from bearish to bullish.
Meanwhile, the dots that make up the Parabolic Stop and Reverse (SAR) indicator have been below the BONK price since August 8.
This serves as an uptrend, with the SAR providing support, suggesting that the price is likely to continue rising.
Obstacles Keep the Bulls at Bay – Do They Have What It Takes?
While BONK’s MACD and SAR indicators hint at bullish sentiment toward the meme coin, a closer look at its chart reveals some crucial hurdles.
BONK’s price appears to be caught in a consolidation phase, as it hovers around both the 50DMA (pink) and the 20DMA (yellow).
Neither of these moving averages has provided clear resistance or support, resulting in a lack of decisive price direction.
As a result, BONK has remained rangebound for the past nine days, trading within a narrow range between $0.0001880 and $0.00002175.
BONK/USDT 1H Chart. Source: Binance.Momentum indicators suggest that the current demand for BONK may not be enough to trigger a rally. Most Notably, the Relative Strength Index (RSI) (purple) remains below its neutral line at 40. While the asset isn’t deeply oversold, it leans bearish.
The weak buying pressure reflects cautious sentiment among traders, which could prevent BONK from gaining upward momentum in the near term unless stronger demand materializes.
Likewise, BONK’s Chaikin Money Flow (CMF) is struggling to break out of the negative territory, currently sitting at -0.2. This indicates persistent selling pressure, making any potential price rally challenging.
However, traders should monitor for a consistent hold above the lower bound of consolidation for confirmation of a retest.
If BONK can maintain this level, the immediate resistance provided by the 200DMA (blue) becomes the next key barrier as confirmation of a breakout from the upper bound of consolidation.
Beyond that, the recovery target would shift toward $0.000025.
There’s A New Doggy in Town
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