The meme token Bonk (BONK) experienced a significant surge in mid-December, with its price soaring by 256% between December 13 and 15. This rally captured the attention of meme token buyers, but the current market conditions suggest that sellers might be gaining the upper hand.
Despite the recent downturn, BONK has been one of the year’s most popular meme tokens. Whether bulls can defend the support zone where the price was at the time of writing remains uncertain. A move above $0.0000168 could signal the beginning of a buyer resurgence. The mid-December rally from $0.0000092 to $0.000035 was used to draw a series of Fibonacci retracement levels.
In the popular altcoin, the 78.6% Fibonacci level at $0.0000147 was expected to act as support, with an additional intersection point just below it. However, sellers showed strength in the past week. The On-Balance Volume (OBV) saw only a slight decline, but the Relative Strength Index (RSI) fell below the neutral 50 and retested it as resistance, indicating a definite bearish momentum.
Experts suggest that BONK’s market structure on the 12-hour chart is also bearish, making a downward move towards $0.0000118 and $0.00000925 levels likely. Since December 24, the open interest chart has trended downwards, with token prices falling by 33%, from $248 million to $155 million on January 1.
This decrease in open interest may be a strong indicator of a bearish short-term market sentiment. Bears likely took control after bulls failed to convert $0.0000147 into support during the December 29 rally. Consequently, Bonk buyers may wait for the structure to shift to a bullish trend before placing bids. Currently, Bonk’s market is dominated by sellers, with buyers uncertain if they can defend the support zone. The RSI and open interest chart suggest a short-term bearish trend, prompting buyers to wait for a potential uptrend before entering the market.