The value of Solana-based meme coin Bonk (BONK) has dropped dramatically over the past week. At press time, BONK was trading at $0.000021, down 24% in the past seven days.
This decline pushed BONK’s price down to important support levels that have been in a descending triangle pattern since May. Readings on some key technical indicators suggest further declines below this level are possible.
BONK Uptrend Facing Challenges
Looking at BONK’s 1-day chart, the altcoin has been in a descending channel since May 29. At current prices, BONK’s value has fallen by 42%.
This pattern occurs when an asset price forms a series of lower highs and horizontal support lines. This confirms that the bearish trend will continue if the price breaks below the horizontal support line. At press time, BONK was trading close to the support level at $0.000021.
Some of BONK’s key technical indicators evaluated on the daily chart confirm the possibility of a break below this level and a continuation of the downtrend.
For example, as of this writing, BONK’s relative strength index (RSI) is at 36.35, which is in a downtrend.
The RSI value of Meme Coin is 36.60, indicating significant selling pressure in the market. This suggests that further downward movement may be expected.
BONK Price Forecast: Brace for Impact
The setting of BONK’s Moving Average Convergence/Divergence (MACD) indicator confirms its bearish bias against the meme token. As of this writing, the MACD line is below the signal line and the 0 line.
If the bulls fail to hold the support line, Mimcoin could drop to $0.000012, marking a multi-month low. On the other hand, a surge in trading volume could push the price up to $0.000025.
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