Will BONK retrace 100% of its gains?

• BONK bulls could muster only a weak bounce from a key zone of support on the price chart.
• If the bearish pressure continues, BONK will retrace 100% of its rally from two weeks ago.

Bonk [BONK] saw a massive upward move in the middle of December. From the 13th to the 15th of December, the buyers of the meme coin went on a rampage and pumped prices by 256% at the peak. However, the sellers seem to have the upper hand now.

Even so, BONK has been one of the most popular meme coins of the year. It remains to be seen if the bulls can defend the support zone that the price is within at press time. A move past $0.0000168 would be the first sign of a buyer revival.

The Fibonacci retracement levels have been breached

Source: BONK/USDT on TradingView

The rally from $0.0000092 to $0.000035 in mid-December was used to plot a set of Fibonacci retracement levels (pale yellow).

The 78.6% level at $0.0000147 was expected to act as a support, with the bullish breaker block just below it as an added confluence.

Yet, the sellers have been strong in the past week. The OBV saw only a minor descent, but the RSI has fallen below the neutral 50 and retested it as resistance. This meant that momentum was firmly bearish.

The market structure on the 12-hour chart was also bearish. Hence, it is likely that BONK is headed toward the $0.0000118 and $0.00000925 levels southward.

Source: Coinglass

Since the 24th of December, the Open Interest chart has slid downward. It dropped from $248 million to $155 million on the 1st of January, alongside a 33% drop in prices.

Realistic or not, here’s BONK’s market cap in BTC’s terms

This was a strong sign that the short-term market sentiment was bearish.

Since bulls were unable to flip $0.0000147 to support during the bounce on the 29th of December, bears can be assumed to have taken control. Thus, Bonk’s buyers can wait for the structure to shift bullishly before bidding.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.