Despite downward pressure on Bonk token's price, technical signals and influx of savvy capital indicate a promising rebound potential ahead. Investors should closely monitor market developments to seize upcoming opportunities.
Despite the 35% drop in Bonk token price from its yearly high, savvy investors haven’t slowed their accumulation. According to Nansen data, their Bonk holdings have surged by 317% over the past 30 days, making it the most sought-after token by this category of investors.
In contrast, whales – holders of large token quantities – have reduced their positions from 2.17 trillion tokens to 2.06 trillion. This opposing dynamic between “smart money” and whales reveals sustained interest in Bonk among the most sophisticated investors.
The technical analysis of Bonk’s price suggests a potential rebound. After falling to $0.000008953 in March, the token formed a double bottom characterized by two successive drops and a crucial support level at $0.00001543. Bonk subsequently reached a peak of $0.00004060 in July before returning to the current level of $0.00002575.
The fact that Bonk retested this support level at $0.00002575 – its May high – is generally a bullish continuation signal. Additionally, the formation of a “golden cross”, with the crossing of the 50 and 200-day exponential moving averages, strengthens the prospect of a rebound.
Thus, Bonk should likely bounce back and retest resistance at $0.000040, representing a 55% increase from the current price. Only a fall below the support at $0.00002338 would invalidate this bullish scenario.
Nevertheless, BONK is on the verge of breaking its bullish trendline. If this gives way, it could return to liquidity zones between $0.019 and $0.021 (also the price of its 50-day MA)
If the support at $0.01973 is lost, it could fall back to $0.01828 (also the price of its 200-day MA).
These two support zones will be entry points for opportunistic traders with high chances of rebounds in these areas.
Despite the current downward pressure, technical signals and accumulation by savvy investors suggest a promising rebound for the Bonk token.
However, in the short term, the token could undergo a deeper correction between 9 to 25% lower. Indeed, despite whale accumulation, smart money induced massive selling pressure yesterday, according to Stalkchain.
To optimize your DCA and profit chances, it’s advisable to wait until the 4-hour RSI reaches the oversold zone. When this occurs, a DCA strategy will be optimal.
Here’s how to buy BONK on Bitget easily right now :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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