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The BONK price movements have brought it close to a critical support level, and its reaction could make or break its price trajectory from there. A detailed technical analysis on the TradingView platform suggests that the cryptocurrency’s current setup could lead to either a bullish breakout to retest its all-time high at $0.00005825 or a further decline below $0.00001497, depending on how price action unfolds in the coming days.
Descending Channel And Double Bottom Pattern For BONK
Meme cryptocurrency BONK has largely been trading within a descending channel for the past three months, which has been characterized by the formation of lower highs and lower lows on the daily candlestick timeframe chart. This descending channel pattern kickstarted after BONK reached a new all-time high of $0.00005825 on November 20, 2024.
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As noted by the analyst on TradingView, the BONK price is currently showing signs of a healthy retracement after rejecting at a lower high within the descending channel. This retracement has now seen the meme coin at a critical support zone around $0.000026 within the descending channel. Interestingly, the retest of this support zone hints at the possibility of a double bottom pattern, as the price chart shows BONK had bounced off this zone on December 20, 2024.
The double bottom is the bullish scenario for the BONK price. However, the analyst highlights that confirmation on lower timeframes is essential for this double-bottom scenario to materialize. Specifically, a bullish Internal Change of Character (I-CHoCH) within the current support zone would signal that buyers are re-entering the market, which would increase the likelihood of a breakout from the descending channel.
Key Price Levels To Watch For BONK Price
The $0.000026 level is highlighted as a critical support level to keep an eye on in the coming days to see how it eventually plays out for BONK. Should BONK manage a rebound from this level, the first step toward a sustained bullish move would be to break above the upper trendline of the descending channel, which would be anywhere between $0.000030 and $0.000031.
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Upon confirming the breakout, the analyst identified several resistance levels that BONK would encounter on its path to a new all-time high. These levels include $0.00003657, $0.00004754, and a strong resistance point at $0.00006340.
However, the analyst also points out that there remains a risk of further retracement or even panic selling, especially if BONK fails to exhibit bullish confirmations through an I-CHoCH in the lower timeframes. This scenario could cause a break below $0.000026 to reach another strong support zone, where a similar I-CHoCH confirmation would still be necessary to validate a potential bounce. Without these confirmations, the bullish outlook could be invalidated.
At the time of writing, BONK is trading at $0.00002863 and is up by 5% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
