BONK (BONK) Loses the Momentum, Fails to Capitalize on the Potential Rally

BONK, a Solana meme coin, was on the verge of a significant breakout that could have resulted in a 92% rally. However, a sudden shift in investor sentiment and market behavior caused BONK to miss this opportunity.

Solana meme coin BONK was on the cusp of a major breakout that could have led to a 92% rally, but a last-minute shift in market sentiment caused the coin to miss out on this opportunity.

After a strong bull run that saw BONK soar by over 1,100% from its all-time low, the coin's momentum stalled as it failed to break through a critical resistance level. This halted the potential rally and left the meme coin’s price trajectory largely unchanged.

BONK Loses Steam

The Chaikin Money Flow (CMF) indicator signaled increasing capital inflows into BONK throughout early September, indicating growing investor confidence in the meme coin. However, as BONK approached a breakout from the crucial resistance at $0.00002400, the CMF began to show a decline.

This shift in the CMF suggested that investors were pulling back, causing BONK to lose the momentum it needed to break through the resistance. This last-minute change in sentiment played a key role in the coin's failure to capitalize on the potential rally, leaving it stuck below critical resistance levels.

Moreover, the broader macro momentum for BONK also presented challenges. BONK’s correlation with Bitcoin has been continuously decreasing, and it currently stands at 0.48.

This low correlation is a bearish sign, indicating that BONK is not benefiting from Bitcoin’s recent recovery. Usually, altcoins with higher correlations to Bitcoin can ride the wave of the crypto king’s rallies, but BONK seems to be missing out.

Without a strong correlation to Bitcoin, BONK lacks the external market support necessary to sustain a rally. This decreasing correlation could keep the meme coin down as it struggles to gain independent upward momentum.

BONK Price Prediction: Slow Moves Ahead

BONK has been trading within a descending wedge since mid-May, and this week it was on the verge of a breakout. The pattern indicated a potential 92% rally upon breakout, which could propel the coin back to its all-time high at $0.00004800. However, the failed breakout has dampened these expectations for the meme coin.

If BONK fails to hold its current support at $0.00002153, it could enter a period of consolidation above $0.00001732, further delaying any potential bullish momentum. The coin will require stronger bullish cues to make another attempt at a rally.

However, if the broader crypto market turns bullish, BONK could see a shift in its fortunes. A breakout would be confirmed if the resistance at $0.00002748 is flipped into support, which would invalidate the bearish outlook and potentially spark a rally toward previous highs.

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