Bonk Inu (BONK) has faced a downward trajectory since hitting major exchanges in mid-December, marking an oversold status due to investor sell-offs. However, signs of a potential shift are emerging, hinting at a possible turnaround for this dog-themed crypto.
The price drop of Bonk Inu by 64% between December 14 and 28 resembles a bear market correction that usually spans years. Despite this, the volatile nature of meme coins suggests that BONK is nearing a point where a reversal could be triggered. While it seems to have hit a possible bottom around the $0.0000129 support level, it’s still uncertain.
Observing the Awesome Oscillator (AO), higher lows were evident on December 20 and 28, while Bonk Inu’s price demonstrated lower lows. This divergence, known as bullish divergence, often signals a forthcoming reversal in the asset’s price. This adds weight to the potential formation of a bottom.
A decisive shift of the $0.0000174 hurdle to a support level would confirm bullish activity, potentially leading Bonk Inu’s price to surge by 31% to the next resistance at $0.0000228. This could mean nearly 55% gains from its current trade value of $0.0000152. For less risk-taking investors, the flip of $0.0000174 into a support level could serve as a strategic entry point for gains of around 31%.
While the positive outlook seems promising, it’s important to note the risk involved in trading before the $0.0000174 shift. Heavy resistance at this level could prompt corrections, continuing the downtrend.
However, if Bonk Inu’s price breaches the $0.0000129 support level and turns it into a resistance level, indicating a lower low, the bullish outlook would be invalidated. This scenario could lead BONK to decline by 28% towards the next support at $0.00000925.
