BONK Finds Itself Under Increasing Selling Pressure As Its Recent Rally Falters

BONK finds itself under increasing selling pressure as its recent rally falters, raising concerns about the token's ability to sustain its upward momentum.

BONK is facing increasing selling pressure as its recent rally falters. The price is dropping toward a key support level, and technical indicators are pointing to a potential decline.

BONK is currently trading at $0.00003318, down 4.3% in the past 24 hours. The meme coin has been rallying significantly since its launch on January 5, rising by over 1,600% at one point. However, the recent sell-off is raising concerns about the sustainability of BONK's upward momentum.

The price is now approaching a crucial support zone at $0.00002962. A failure to hold this level could trigger further downward movement and amplify the bearish continuation.

Participants are closely monitoring the price action at this pivotal support level, observing either signs of a recovery or indications of a deeper correction in BONK's price movements.

Technical Indicators Suggesting Potential Decline in BONK Price

A key technical indicator that is attracting attention is the Simple Moving Average (SMA) over 100 days. This indicator is used to gauge changes in market sentiment.

Presently, BONK is trading below the 100-day SMA, which is typically viewed as a bearish signal. It suggests that the average price over the past 100 days is lower than the current price.

This positioning below the SMA raises concerns about the strength of BONK's recent rally and indicates a potential sell-off, as prices might be set for further losses with the market sentiment turning negative.

Another indicator that is signaling a potential weakness in bullish momentum is the Relative Strength Index (RSI). After previously reaching the 50% threshold, RSI is now dropping again.

This decline in the RSI indicator suggests a potential weakening of bullish momentum, indicating fading buying pressure as it moves toward lower levels.

Typically, such a movement in RSI raises the risk of bearish action and coincides with a deeper pullback in BONK's price, as the RSI shifts further away from the neutral zone.