BONK Drops 7%, but Is This Drop Just a Liquidity Building Move?

BONKUSDT continues to trade within a historic buy zone between $0.0000088550 and $0.0000128480 after it escaped the grasp of a medium-term negative trend line in the last week. This consolidation phase may be an accumulation period before a move to the upside. In this bullish scenario, BONK may escape the sideways channel and rise to $0.0000192765 in the following few days. A daily candle close above this level could then give the meme coin the foundation needed to rise to the subsequent barrier at $0.0000290295.

This bullish thesis may be invalidated if the Bonk price falls below $0.000008855 in the coming week. In this alternative scenario, the crypto may fall to the next key support level at $0.0000031115.

Investors and traders will want to note that buyers have a slight upper hand against sellers on BONK’s daily chart. The Moving Average Convergence Divergence (MACD) indicator is flagging bullish. In the last 3 days, the MACD line crossed above the MACD Signal line, signaling that the meme coin has entered into a short-term positive cycle. However, the Relative Strength Index (RSI) indicator shows that bulls and bears have equal strength. This is evident with the RSI that is at the same point as its Simple Moving Average (SMA) line.