Journalist
Posted:
- BONK has breached a year-long support level, heading toward an all-time low in the market.
- OI-Weighted Sentiment and Relative Strength Index (RSI) showed a fractal pattern that could intensify BONK’s fall.
Bonk [BONK] holders have yet to catch a break from the declining market activity.
In the past four weeks, it recorded a steep loss of 56.44% and has continued falling, losing another 14.25% in the past 24 hours as the broader cryptocurrency market crashes.
Analysis of BONK by AMBCrypto showed that the fall could gain more momentum and form an all-time low, particularly as a bearish fractal pattern surfaces.
A 25% fall on the horizon as support fails
BONK has breached its year-long consolidation channel, which began in December 2023. A consolidation channel involves price trading between defined support and resistance levels.
The breach has led to a breakdown from the current support level at 0.00001531. It was heading for the all-time low at 0.00000933 at press time—a 25.41% decline from its prevailing price level.
Source: TradingView
If this level is breached, the fall could extend further as the market moves into a bearish price discovery phase, with no key support level to influence a bounce back.
Fractal pattern suggests further decline
At the time of writing, the OI-Weighted Funding Rate—which combines Open Interest and funding rates to gauge market direction—suggests a further decline.
This metric has remained negative in recent days, indicating persistent bearish sentiment.
A closer look at historical patterns reveals that between the 15th to the 20th of February, when the OI-Weighted Sentiment was also negative, BONK saw a sharp drop of 17%, entering the oversold region before briefly stabilizing, only to continue falling.
Source: TradingView
Now, a similar pattern is unfolding. The OI-Weighted Sentiment has been predominantly bullish for two days, coinciding with the RSI nearing the overbought zone.
If history repeats itself, BONK may stabilize briefly before resuming its downward trajectory.
The RSI, which identifies overbought (above 70) and oversold (below 30) conditions, suggests that BONK’s upside potential is limited.
Instead, the token is more likely to continue its decline toward, or even below, its all-time low.
Momentum-backed selling
The current decline in BONK is driven by a high volume surge in the market, which gained 186.53% to $39.81 million—indicating the strong momentum behind the sell-off.
This volume surge provides more insight into the declining Open Interest, leading to several unsettled contracts being closed, as seen with a 24-hour drop of 10.81% to $8.18 million.
Should this trend continue, it would contribute to the current bearish market phase, keeping BONK at the lower end.
