- Bonk price has dropped 50% since its peak this year, hitting its lowest level in two weeks.
- Whale purchases have surged, with large holders acquiring 80 billion tokens, signaling confidence in a recovery.
- Technical analysis shows a double-bottom pattern forming, suggesting a potential rebound if key resistance levels are breached.
The Bonk (BONK) token experienced a significant drop, falling to its lowest point in two weeks, hitting $0.00001980. This decline comes as the broader cryptocurrency market faces turbulence. The drop represents nearly a 50% fall from its peak earlier this year, amid worsening sentiment in the sector.
The price of Bonk has been under pressure due to the ongoing market downturn. Bitcoin (BTC) also saw a decline, falling below the $112,000 mark, while the total market cap of all cryptocurrencies dropped by 3.7%, reaching $3.98 trillion. As a result, many smaller altcoins, including Solana-based Bonk, have been affected by the overall bearish trend.
Whale Activity Offers Potential Rebound Signals
Despite the downturn, there are signs that market participants are preparing for a potential recovery. Whales, or large investors, have been active, buying 80 billion Bonk tokens, according to data from Nansen. This surge in whale purchases has helped to increase the total supply of Bonk tokens held by whales to 2.61 trillion.
Source: TradingView
This uptick in whale activity coincides with a notable decrease in the number of Bonk tokens available on centralized exchanges. Data shows that exchange balances have fallen from 24.7 trillion to 23.98 trillion in a single day. This outflow of tokens from exchanges is seen as a bullish indicator, signaling that investors are not selling their holdings but rather moving them to self-custody, anticipating a potential price rebound.
Technical Indicators Suggest Possible Reversal
Looking at the technical side, Bonk’s price chart shows that the token has been struggling in recent months, dropping from a high of $0.00004075 in July to the current low. The token has fallen below both the 50-period and 100-period exponential moving averages, suggesting that bearish momentum has been dominant. However, Bonk has found support at the 61.8% Fibonacci retracement level, which often serves as a crucial point for reversals.
Additionally, a double-bottom pattern has formed around the $0.00001950 level, with the neckline set at $0.00002757. This technical setup is viewed by traders as a sign of potential upward movement, particularly if the price breaks above the neckline.
