BONK Price Tanks 12.5% after Failing to Secure 92% Rally, What’s Next?

Solana meme coin BONK BONK $0.000013 24h volatility: 4.0% Market cap: $1.03 B Vol. 24h: $141.98 M has come under significant selling pressure recently amid the broader market correction dropping from a major breakout point that could have otherwise resulted in a strong 92% rally. However, a major shift in investor sentiment has caused BONK to miss the opportunity thereby pushing the BONK price lower by 12.5% to $0.0000214.

Since early September, Solana meme coin BONK has been seeing increasing capital inflows as per the Chaikin Money Flow (CMF) indicator. This was a major bullish indicator suggesting that investors were confidently eyeing a BONK price surge ahead.

However, as BONK neared a breakout above the key resistance level of $0.00002400, the Chaikin Money Flow (CMF) indicator started to show a downward trend.

With the broader crypto market sentiment turning bearish, investors started to pull back causing the BONK price to lose momentum and break past beyond the crucial resistance.

Additionally, the broader macro sentiment for BONK also shows major challenges ahead. In recent weeks BONK’s correlation with Bitcoin BTC $101 703 24h volatility: 0.5% Market cap: $2.03 T Vol. 24h: $48.07 B has been on a decline, currently standing at 0.48. This low correlation is a bearish indicator showing that BONK is failing to benefit from the Bitcoin price recovery. Several altcoins with a stronger correlation to BTC have already made the move in September.

With a weak correlation to Bitcoin, BONK lacks the broader market support necessary to maintain a rally. This declining connection may limit the meme coin’s ability to gain upward momentum, as it struggles to rise independently of Bitcoin’s movements.

BONK Price Action Ahead

For a long time, the BONK price has been trading within a descending wedge pattern and was preparing for a breakout beyond this. Any possibility of a breakout above this wedge could have pushed the BONK price higher by 92% taking it all the way to its all-time high at $0.00004800. However, the failed breakout dampened the expectations.

If BONK fails to hold its support at $0.00002153, it may enter a consolidation phase above $0.00001732, further postponing any potential upward movement. Stronger bullish signals will be necessary for the coin to make another attempt at a rally.

If the broader crypto market reverses its trajectory, the BONK Price could see a reversal in its fortunes. For now, BONK first needs to give a breakout above $0.00002748 while flipping this resistance into support. this would help the Solama meme coin break past its bearish zone and kickstart a rally toward its previous highs.

Along with BONK, the broader meme coin sector is facing a strong sell-off with PEPE PEPE $0.000006 24h volatility: 3.2% Market cap: $2.50 B Vol. 24h: $300.01 M and WIF WIF $0.46 24h volatility: 2.1% Market cap: $460.67 M Vol. 24h: $126.05 M also collapsing by a similar magnitude. The actual effect of the Fed rate cut and liquidity infusion still needs to kick in for the altseason to begin.

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