The change in the stock price is BONK is brought close to a critical support level, and its response could make or break its price path from there. Detailed technical analysis on the TradingView platform suggests that the current situation of the cryptocurrency could lead to a bullish breakout to reconfirm the all-time high at $0.00005825 or another decline below $0.00001497, depending on how price action unfolds in the coming days.
Descending channel and double bottom pattern for BONK
Meme cryptocurrency BONK has mainly been trading within a descending channel for the past three monthswhich is characterized by the formation of lower highs and lows on the daily candlestick chart. This channel pattern is descending kickstarted after BONK arrived The highest value of NHX share at November 2024 was 0.00005825 US dollars.
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As mentioned by the analyst on TradingViewBONK price is currently showing signs of a healthy trend after rejecting a lower high within the descending channel. This move has now seen the meme coin at a critical support area around $0.000026 within the descending channel. Interestingly, a retest of this support zone suggests a possible double bottom pattern, as the price chart shows that BONK had bounced off this zone on December 20, 2024 .
The double bottom is the bullish position for the price of BONK. However, the analyst clarifies that confirmation of lower timeframes is essential for this double bottom scenario to materialize. In particular, a bullish internal character change (I-CHoCH) within the current support area would indicate that buyers are re-entering the market, which would increase the likelihood of a breakout out of the descending channel.
Key price levels to watch for the price of BONK
The rate is $0.000026 marked as emergency aid level to keep an eye on in the coming days to see how it ultimately plays out for BONK. If BONK were to manage a rebound from this level, the first step towards a sustained supportive move would be to break above the descending channel's upper trendline, which would instead be between $0.000030 and $0.000031.
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After confirming the violation, the analyst indicated several levels of resistance that BONK would be crossing the road to a new level full-time. These levels include $0.00003657, $0.00004754, and a strong point against $0.00006340.
However, the analyst also points out that there is still a risk of further withdrawals or even panic selling, especially if BONK fails to present bullish confirmations through I-BOCH in the periods- minimum time. This position could cause a breakdown below $0.000026 to reach another strong support area, where a similar I-CHOCH confirmation would still be needed to confirm a potential bounce. Without these proofs, the a bullish view may be invalid.
At the time of writing, BONK is trading at $0.00002863 and is up 5% in the last 24 hours.
Featured image created by Dall.E, chart from Tradingview.com
