Can BONK get 100% of its profits back?

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Bonk (BONK) saw a strong bullish move in mid-December, with a frenzy of memecoin buyers from December 13th to 15th, pushing the price to 256% of its peak. For now, however, sellers appear to have the upper hand.

Despite this, BONK remains one of the most popular meme coins this year. At press time, it remains to be seen whether the bulls can hold on to the support zone. A break above $0.0000168 will be the first sign of buyer recovery.

Fibonacci retracement levels have been breached

Source: TradingView

BONK’s mid-December move from $0.0000092 to $0.000035 was used to plot a set of Fibonacci retracement levels (light yellow).

The $0.0000147 level at 78.6% is expected to act as support, with a bullish breakout block below it acting as another confluence point.

However, sellers have been extremely active over the past week. OBV fell only slightly, but the RSI fell below the neutral 50 level and retested resistance. This means that momentum weakens sharply.

The market structure on the 12-hour chart is also bearish. Therefore, BONK is likely to fall below the $0.0000118 and $0.00000925 levels.

Source: Coinglass

The open interest (OI) chart has been declining since December 24. On January 1, it fell 33% from $248 million to $155 million.

This is a strong sign of bearish short-term market sentiment.

Since the bulls failed to flip $0.0000147 to find support on the December 29 rally, the bears are arguably in control. Therefore, BONK buyers may wait for the structure to turn to the upside before making a bid.