The Bonk price has recently exhibited signs of vulnerability, with its value dropping below the crucial Point of Control (POC) resistance level. This downward trend suggests that the cryptocurrency may be poised for a deeper correction, particularly if it fails to maintain its current range low. In this article, we will delve into the technical aspects of the Bonk price and explore the potential implications of its current trajectory.
Technical Analysis of Bonk Price
The Point of Control (POC) is a significant level of resistance that has played a pivotal role in supporting the Bonk price in recent days. However, the breakdown below this structure has resulted in a shift in short-term sentiment, indicating that the market may be preparing for a deeper correction. The low in the value area remains the last key support level, and its failure to hold could trigger a decline towards untapped support zones.
The recent rally in the Bonk price has been characterized by weak volume, which suggests that the demand for the cryptocurrency is weakening. This lack of conviction among buyers is a typical feature of corrective price movements, which often precede another downtrend. Until the price returns to the POC on a closing basis, the near-term outlook for the Bonk price remains pessimistic.
Key Support Zones and Volume Profile
The Value Area Low (VAL) is a critical support zone that the Bonk price must defend to prevent a deeper correction. If this level fails to hold, the cryptocurrency could accelerate towards lower support zones, extending the current correction phase. The weak volume profile reinforces this outlook, as the recent upswing has been largely unrealized by buyers. This lack of conviction suggests that the upward move was likely reactive rather than impulsive, a typical feature of corrective price movements before another downtrend.
The technical environment for the Bonk price suggests caution, as the lack of bullish volume and loss of structural support both point to continued weakness in the near term. If the Bonk price fails to defend the low of the value range, a decline towards untapped support zones becomes increasingly likely. Conversely, if the POC is reclaimed and the price remains above it on heavy volume, this would negate the immediate bearish outlook and signal a possible rotation back towards intermediate resistance levels.
BONUSDT (4H) chart, source: TradingView
For more information on the Bonk price and its potential trajectory, readers can refer to the original article on Crypto.News. The article provides an in-depth analysis of the technical aspects of the Bonk price and explores the potential implications of its current trajectory.
