BONK, a meme coin on the Solana network, was positioned for a significant uptrend that might have led to a 92% surge in value. Trading within a bullish pattern, it was close to breaking out toward its peak price of $0.00004800.
However, a shift in market sentiment and investor behavior prevented this breakout, keeping the token on a downward path. The Chaikin Money Flow (CMF) indicator had shown increased capital inflows, indicating rising investor confidence.
Despite the positive signs, as BONK approached the key resistance at $0.00002400, the CMF showed a downtick, signaling investor pullback, causing the momentum necessary for breaking through the resistance to fade.
The broader macro trends also complicate BONK's potential. Its correlation with Bitcoin has been declining, currently at 0.48, indicating it isn't benefiting from Bitcoin’s latest recovery. A lower correlation typically means a lack of external support for an altcoin’s rally.
If BONK fails to maintain its current support line, it might face a period of consolidation, delaying bullish momentum. Conversely, a broader market rally could potentially reverse BONK's fortunes, helped by flipping the resistance of $0.00002748 into support, negating the bearish trend.
