BONK Struggles To Sustain Gains As Selling Pressure Mounts

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BONK finds itself under increasing selling pressure as its recent rally falters, raising concerns about the token’s ability to sustain its upward momentum. Struggling to maintain its gains, the price has started a fresh drop toward the $0.00002962 key support level, indicating a possible bearish continuation. 

This pivotal zone is under scrutiny as a failure to hold could trigger further downward movement, amplifying pessimistic sentiment. Such a scenario may lead to heightened volatility, with participants watching for either signs of a recovery or indications of a deeper correction. Technical Indicators Point To Potential Decline

BONK is currently trading below the 100-day Simple Moving Average (SMA), a key technical indicator that gauges market sentiment changes. This positioning below the SMA typically signals a bearish outlook as it indicates that the average price over the past 100 days is lower than the current price. Related Reading BONK Finds Stability At $0.00004002, Can Bulls Spark A Comeback? 1 week ago

The fact that BONK is trading below the 100-day SMA raises concerns about the strength of its recent rally and suggests that selling pressure is currently outweighing buying interest, with prices poised for further losses. With the marketsentiment turning negative, there is a high risk of continued declines unless a significant reversal occurs. Bearish action pushes BONK below the 100-day SMA | Source: BONKUSDT on Tradingview.com

Additionally, the Relative Strength Index (RSI) has begun to drop again after previously reaching the 50% threshold. Specifically, the decline in the RSI indicator signals a potential weakening of bullish momentum, suggesting that buying pressure is fading. 

Typically, the RSI’s movement toward lower levels implies that market sentiment may be becoming more cautious with the increase in the risk of bearish action. As the RSI moves away from the neutral zone, it could signal growing selling pressure, reinforcing the potential for a deeper pullbackin BONK’s price. Selling Pressure Intensifies: How Low Can BONK Go?

Sellingpressure on BONK has been mounting, leading to a decline in its price as the recent rally fizzles out. With the token trading below the 100-day Simple Moving Average (SMA) and the Relative Strength Index (RSI) showing signs of weakening momentum, the outlook for BONK is increasingly bearish. Related Reading Is BONK Rally In Jeopardy? Technical Indicators Confirm Weakness 2 weeks ago

If the selling pressure persists, the price could continue to drop, possibly testing key support levelslike $0.00002962. A sustained break below this level could cause further losses, with the next target being the $0.00002320 support level.

However, if the meme coinexperiences a rebound at $0.00002962, it could initiate a fresh climb toward the $0.00004002 mark. Successfully breaking above this resistance might shift the momentum, potentially triggering a rallybeyond the 100-day SMA and targeting the $0.00006247 resistance level. BONK trading at $0.000037 on the 1D chart | Source: BONKUSDT on Tradingview.com Featured image from LinkedIn, chart from Tradingview.com