Bonk price has suffered a deep reversal as the recent bull run faded. The token, which is the biggest meme coin in the Solana ecosystem, dropped to $0.00004 on Wednesday morning, down from this month’s high of $0.0000598.
Crypto analysts expect Bonk token to bounce back
Crypto experts believe that the Bonk coin will bounce back in the coming days. In an X post, Altcoin Sherpa estimated that the coin would rally as the ongoing retracement fades.
Other analysts estimate that the coin will rebound soon and retest its all-time high. One of the reasons mentioned is that it was the first meme coin in the Solana ecosystem and that it will always see demand.
Analysts also cite its strong volumes in the spot and futures market. Bonk had volume of almost $900 million in the last 24 hours. Most of this volume was in exchanges like Binance, Coinbase, and Bybit. Higher volume is a sign that a coin has demand from investors.
Read more: PEPE and BONK Memecoins Hit New Highs, Following Dogecoin’s Bullish Trend
Another catalyst is that Bonk is deflationary as the number of coins removed from circulation is growing. Data shows that over 129.32 billion BONK tokens have been burned and the hope is that 1 trilion coins will be burnd soon.
Bonk price analysis: Has the rally ended?
The daily chart shows that the Bonk price peaked at $0.000059 last week and has now dropped by over 30%. This decline happened as most cryptocurrencies plunged, with Bitcoin nearing the key support at $90,000.
The coin has dropped below two important support levels. It moved below $0.000047, its highest level on March 4th of this year. Bonk has also flipped the key support at $0.0000443, its highest point on May 20, into a resistance.
On the positive side, Bonk’s price remains above the 50-day and 200-day Exponential Moving Averages, which recently formed a bullish crossover pattern. This is a popular continuation pattern in the market.
Bonk has also formed a cup and handle chart pattern, a popular bullish sign. This pattern is made up of a top section followed by a rounded bottom. As such, there are signs that the current retreat is part of the handle.
Therefore, this retreat is part of profit-taking among investors, meaning that it has a chance of bouncing back in the coming days. If this happens, the next reference level to watch will be this month’s high of $0.000060.
A move above that level will raise the possibility of the coin moving to $0.0000755. This target is estimated by first measuring the depth of the cup and then extrapolating it from its upper side. On the flip side, a drop below the support point at $0.000030 will invalidate the bullish view.
