BONK price movement has brought it close to a critical support level, and its reaction could make or break its price action from there. A detailed technical analysis on the TradingView platform suggests the cryptocurrency’s current setup to retest its all-time high at $0.00005825, depending on how the price action unfolds in the coming days or Then below $0.00001497 could cause further decline.
Descending channel and double bottom pattern for BONK
Meme cryptocurrency BONK is largely trading within a descending channel For the last three monthsWhich is indicated by the formation of lower highs and lower lows on the daily candlestick timeframe chart. This descending channel pattern Kickstarted after BONK arrived A new all-time high of $0.00005825 on November 20, 2024.
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As noted by Analyst at TradingViewBONK price is currently showing signs of a healthy retracement after rejecting the lower highs within the descending channel. This retracement has now seen Mim Coin at a critical support zone around $0.000026 within the descending channel. Interestingly, a retest of this support zone points to the possibility of a double bottom pattern, as the price chart shows that BONK broke out of this zone on December 20, 2024.
A double bottom is a bullish scenario for BONK price. However, analysts highlight that confirmation on shorter timeframes is necessary for this double-bottom view to materialize. In particular, a rapid inward change of character (I-CHoCH) within the current support zone will indicate that buyers are re-entering the market, which will increase the likelihood of a breakout from the descending channel.
Main price level to view BONK price
$0.000026 is the level Highlighted as a critical support Level to keep an eye on in the coming days to see how this ultimately plays out for BONK. Should BONK manage a rebound from this level, the first step towards a sustained bullish move would be to break the uptrend 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 Multiple resistance levels That BONK will hit a new all-time high. These levels include a strong resistance point at $0.00003657, $0.00004754, and $0.00006340.
However, the analyst also points out that the risk of further retracement or even panic selling remains, especially if BONK fails to quickly confirm via an I-CHoCH in the lower timeframes. This scenario could lead to 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 can be discredited.
At the time of writing, BONK is trading at $0.00002863 and is up 5% in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
