- BONK is showing a bear market structure on the 12-hour chart.
- Sentiment toward meme coins also tilted bearish.
Bonk (BONK) has had a strong rally over the past week, up 92% from January 8th to January 10th. Despite the surprising rally, price charts on higher periods showed that BONK has a bearish outlook.
At press time, BONK bulls were fighting to defend the $0.000013 support level. A drop below this level is likely to push prices 25%-30% lower.
Understanding BONK’s Bearish Bias
Source: BONK/USDT on TradingView
On the 12-hour chart, BONK posted a bearish order block at $0.000016. These zones are highlighted in red boxes and have been operational since December 29th. On January 10th and 11th, BONK strength temporarily pushed the price above this area.
However, they were unable to establish a close H12 trading session above it. Moreover, the bears were able to push prices down once again, giving sellers the upper hand. RSI was 48 at press time, sending an early signal that momentum had reversed to the bears.
Despite these bearish observations, OBV remained above the December pump high. This level has acted as support over the past few days. This suggested that sales were not overwhelming and emphasized that there was some hope in the upward trend.
Market sentiment for BONK was negative.
Source: Santiment
AMBCrypto examined some social indicators from Santiment to better understand BONK’s position. We’ve seen a downward trend in social volume over the past month.
Weighted sentiment towards meme coins also continued to be negative during the downtrend.
Source: Coinglass
The nearly 100% rally led to a significant increase in open interest. This means that speculators are encouraged to bet on short-term bullish confidence in the token.
However, after the bearish order block was rejected, OI fell along with the price.
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This indicates bearish market sentiment and discouraged buying. Investors and swing traders may wait until the $0.000016 area finds support before looking for buying opportunities.
Alternatively, a revisit to the $0.00000925 level could result in a significant bounce.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.