BONK price is still under pressure amid tight tracking of a crucial support level which might decide the next trend for the meme token. Despite ongoing bearish price movements, some experts believe a powerful response from an important demand level may pave the way for recovery.
At the time of publishing, BONK price was at $0.000004472, with a 24-hour loss of 2.09%. The token had a daily volume of $16.97 million and a market cap of $393.51 million.
Source: CoinMarketcap
BONK Price Faces Crucial Test at Key Demand Zone
Based on an assessment provided by Finora AI, the prevailing market structure of BONK implies that the coin could potentially drop in price before embarking on a recovery phase.
The analyst emphasized that the demand zone between $0.00000432-$0.00000415 and fair value gap (FVG) is the critical level to pay attention to. Upon reaching the level and creating a bullish reaction, traders might experience a recovery toward higher levels of resistance.
Source: Finora Ai X Post
Finora AI highlighted that it is important to get confirmation prior to taking any long trades. Bullish engulfing candles, pin bars, powerful rejection wicks, or even break-and-retest pattern on lower time frames may act as confirmation of buyers gaining back their control.
If buyers manage to hold their demand zone, BONK can climb up to $0.00000453 and then move up to resistance at $0.00000472 and $0.00000488.
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However, even as a recovery move may be expected, there are still high probabilities for downside risk scenarios. As per the technical analysis, a break lower than $0.00000415 will reduce the optimism on the upside.
Most critically, any break below $0.00000400 could swing the market into the bearish bias and open up greater downside prospects for BONK. Such a move would likely see the immediate key support level being $0.00000375 or even lower in a worse-case scenario.
Funding Rates Reflect Cautious Market Sentiment
From the analysis of the Coinglass statistics, BONK’s OI weighted funding rate was mostly neutral and occasionally bearish over the last year due to prolonged periods of being below zero caused by intense short positions.
In recent weeks, however, the funding rates are getting closer to neutral and sometimes even positive which suggests that the bearish pressure on the asset is declining.
Nevertheless, the lack of prolonged periods of being positive and the poor price structure of BONK show that investors still need a trigger before making a decision in one direction or another.
Source: Coinglass
What’s Next for BONK?
BONK is reaching an important point as traders watch out for the demand zone at $0.00000432–$0.00000415. A robust rebound from this level will lead to a relief rally towards higher resistance zones and help restore short-term optimism.
On the other hand, failing to bounce off the support level may result in more selling and push BONK into a fresh downward phase. Unless confirmation is seen, traders will continue to be cautious and watch out for both price and derivatives action.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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