BONK’s 92% Rally Opportunity: Why It Failed to Break Out

BONK, a meme coin on the Solana network, was poised for a major breakout that could have led to a remarkable 92% surge. The token was trading in a bullish pattern, approaching a potential breakout that could have driven its price towards its historical high of $0.00004800.

Unfortunately, an abrupt change in investor sentiment and market dynamics prevented BONK from seizing this opportunity, leaving the token trapped in a downward trend.

BONK Loses Big Time

The Chaikin Money Flow (CMF) indicator had been on the rise since early September, reflecting increasing capital inflows into BONK. This was a promising development, indicating that investors were growing more optimistic about the meme coin’s prospects. However, just as BONK was nearing a critical breakout from the resistance level at $0.00002400, the CMF started to decline.

This downturn in the CMF suggested that investors were retracting, leading BONK to lose the necessary momentum to breach the resistance. The sudden shift in market sentiment was crucial in the coin’s failure to leverage the potential rally, keeping it below significant resistance thresholds.

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The overall macro momentum for BONK also presents difficulties. The correlation between BONK and Bitcoin has been gradually decreasing, currently at 0.48.

This low correlation is considered a bearish indicator, as it suggests that BONK is not capitalizing on Bitcoin’s recent recovery. Altcoins with stronger correlations to Bitcoin typically benefit from its upticks, but BONK seems to be missing that opportunity.

Without a robust correlation to Bitcoin, BONK lacks the external market support crucial for sustaining a rally. This declining correlation could keep the meme coin subdued as it struggles to achieve upward movement separate from Bitcoin’s fluctuations.

BONK Price Prediction: Slow Moves Ahead

BONK has been caught in a descending wedge pattern since mid-May and was nearing a breakout this week. The formation indicated a potential 92% rally upon breakout that could send the coin back to its all-time high of $0.00004800. However, the failed breakout has tempered these projections for the meme coin.

If BONK cannot sustain its current support at $0.00002153, it may face a period of consolidation above $0.00001732, further postponing any possible bullish momentum. The coin will require stronger positive indicators to make another push for a rally.

Read more: 11 Top Solana Meme Coins to Watch in June 2024

However, should the broader cryptocurrency market adopt a bullish stance, BONK could experience a turnaround in its fortunes. A breakout would be confirmed if the resistance at $0.00002748 becomes support, negating the bearish sentiment and potentially igniting a rally towards previous highs.