Bonk Faces Bearish Pressure Below 200-Day Moving Average
Bonk (BONK) is struggling to regain its footing as it trades below the 200-day moving average. This key level, now acting as a major resistance, is preventing any notable bullish recovery.
The 200-day moving average aligns with the daily point of control, creating a strong barrier. Until Bonk breaks above this level with strong volume, the bearish trend is likely to continue.
Key technical points for Bonk:
- Major Resistance: 200-day moving average and daily point of control.
- Major Support: Value area low and high-time-frame support.
- Market Structure: Trading below the 200-day moving average indicates bearish control.
Historically, such resistance zones cause price action to stall or reverse. Bonk’s earlier attempts to reclaim this level have failed, signaling ongoing bearish pressure.
The next area of interest is the value area low, which acts as a support level. If the price continues to weaken, it may head towards this region.This could lead to a re-accumulation phase where the market consolidates.
for a bullish reversal, Bonk must close decisively above the 200-day moving average. This would signal a shift in market structure and open the door for an upward move.
As long as Bonk remains below the 200-day moving average, the risk of a deeper move towards the value area low remains high. A strong close above this level would invalidate the bearish outlook and confirm bullish intent.
