Bonk (BONK) Price Prediction 2023 — Will BONK Recover?

Over the past month, Bonk [BONK] has struggled, dipping by 25.29% and failing to deliver gains for investors. Despite this, recent price action shows a glimmer of recovery

Memecoin Bonk [BONK] has had a turbulent ride over the last 30 days, showing a 25.29% decrease in value. However, recent price movements indicate a slight recovery, with the asset gaining 0.16% over the last 24 hours.

Despite the recent minor uptick, which is supported by strong bullish signals, trader sentiment seems to be misaligned, posing a potential obstacle to BONK’s sustained rally.

A double bullish pattern in the accumulation zoneAt press time, BONK was trading within two bullish patterns—a descending channel on the larger timeframe and a consolidation phase within the channel, indicating ongoing accumulation.

The descending channel usually denotes lower lows as buyers bid at decreasing prices before the market rallies. Within this structure, the consolidation phase, marked by a rectangular box, shows price distribution between defined support and resistance levels.

A breakout from this consolidation phase and a breach of the descending channel’s resistance line could potentially lead BONK to a significant rally, reaching $0.00005666—a 78.65% gain from its current level.

Source: TradingView

This bullish outlook is further supported by technical indicators. The Relative Strength Index (RSI), a measure of price momentum, bounced perfectly off the neutral line at 50 and stood at 53.89, suggesting upward momentum.

When the RSI stays above 50 and trends higher, as it does for BONK, the likelihood of continued price gains increases.

Source: TradingView

The Aroon indicator also confirms bullish momentum. The Aroon-Up (orange) is at 64.29%, outpacing the Aroon-Down (blue) at 21.43%. This indicates strong buying activity and suggests that BONK remains in an accumulation phase.

The Aroon indicator tracks the strength and direction of trends by measuring the time since recent price highs and lows.

However, some market hesitancy was observed by AMBCrypto, with certain cohorts showing signs of selling pressure.

Potential delay in BONK’s upswingThe memecoin may experience a pause or slowdown before continuing its upward trajectory.

At the time of writing, Open Interest (OI) has dropped by 4.97% over the last 24 hours, falling to $12.15 million. A decrease in OI usually signals bearish sentiment, as it suggests reduced trader participation or exiting positions.

Moreover, Exchange Netflow data indicates unfavorable trends for BONK. There has been a significant inflow of funds into exchanges, totaling $7.85 million in the past week.

Source: Coinglass

This movement reflects increased selling pressure as more market participants transfer assets to exchanges.

If these trends persist, BONK risks remaining in its consolidation phase for a longer period before breaking out to the upside. However, if buyers step in and accumulate the asset, the memecoin could resume its rally sooner.

TVL growth for BONKThe Total Value Locked (TVL) of Bonk Staked SOL (bonkSOL), a liquid staking token (LST) tied to BONK validators, has seen a substantial surge.

Source: DeFiLlama

Read Bonk’s [BONK] Price Prediction 2024-25

As of now, the TVL stands at $23.59 million, marking its highest level since the 21st of December.

This notable liquidity inflow into the memecoin’s validator pool is expected to have a positive ripple effect on BONK itself.