Bonk Shows Resilience Amidst Crypto Crash: Can the Meme Coin Recover? Crypto

Bonk Shows Resilience Amidst Crypto Crash: Can the Meme Coin Recover?

Author's avatar Shaheer Ansari

Time icon June 11, 2024   | Last Updated: June 11, 2024 at 8:30 PM

The cryptocurrency market has taken a hit in recent days, with many major meme coins experiencing significant price drops. However, Bonk (BONK) has shown surprising resilience, exhibiting only a modest decline compared to its peers. This begs the question: can BONK recover and continue its upward trajectory?

BONK Weathers the Storm, But Challenges Remain

While BONK has seen a 2.71% decrease in the last 24 hours, dropping to $0.000247, this pales in comparison to the 5-10% losses experienced by other meme coins. Over the past week, BONK is down 7.46%, but this is offset by an impressive monthly gain of 34.32%.

This recent resilience highlights the strong investor interest in BONK, further bolstered by a 16.09% increase in 24-hour trading volume to $609.24 million.

Technical Analysis Hints at Potential Uptrend

After a brief dip this morning, BONK appears to be making a comeback. Notably, the price surged after retesting a key support level, suggesting a potential trend reversal. This is further supported by the Relative Strength Index (RSI) jumping from 30 to 65 within 24 hours, indicating weakening selling pressure.

However, technical indicators also present a cautionary note. The 200-day and 30-day moving averages are both trending downward, suggesting a broader downtrend may still be in play. If the 30-day average fails to rise soon, the current positive momentum might not be enough to overcome the larger bearish trend.

External Factors Could Impact BONK’s Recovery

As a meme coin, BONK’s price heavily relies on market sentiment. Tomorrow’s release of the US Consumer Price Index (CPI) data could significantly impact the overall market direction. Analysts suggest that a CPI inflation rate of 3.3% or lower might be crucial for a continuation of a bull market, which would benefit BONK.

Furthermore, recent events like Roaring Kitty’s significant losses in GameStop stock could trigger increased activity in meme coins, potentially leading to short-term volatility for BONK.

A Wait-and-See Approach for BONK

While BONK has shown resilience compared to other meme coins in the recent market downturn, its future remains uncertain. The upcoming CPI data and broader market sentiment are likely to play a major role in BONK’s recovery. Investors interested in BONK should closely monitor these factors and conduct their own research before making any investment decisions.

Author’s avatar

Shaheer Ansari

Shaheer is a Journalist and Managing Editor at Clout News. His reporting is a medley of finance, crypto, influencers, and entertainment stories.