Solana-based meme coin BONK may be down this week, but signs point to a potential turnaround as key indicators and partnerships come into play.
BONK, the dog-themed utility token that skyrocketed in early 2024, has faced a sharp downturn recently, shedding nearly 14% of its value over the past seven days. Despite the setback, analysts and traders are closely watching a mix of technical and fundamental signals that suggest a bounce could be on the horizon.
BONK Price Forecast: Mixed Technicals, Bullish Bias
Currently priced at $0.00001875, BONK has underperformed compared to other Solana-based meme coins like Dogwifhat (WIF), which gained nearly 10% over the same period. However, weekly technical indicators remain optimistic.
- MACD on the weekly chart shows bullish crossover, suggesting underlying positive momentum.
- RSI reads 48, hovering near the neutral zone indicating the potential for upside if strength returns.
Key levels to watch:
- Resistance: $0.00002039 (lower boundary of a Fair Value Gap)
- Support: $0.00001572 (lower boundary of a bullish imbalance zone)
On the daily chart, the sentiment leans more bearish. MACD shows red histogram bars, and RSI is at 49 both indicating weak momentum and a possible short-term pullback. However, a liquidity grab from the imbalance zone could lead to an eventual bounce targeting $0.00002039 and even $0.00002581 in the near term.
On-Chain and Derivatives: Signs of Capitulation and Recovery
On-chain metrics from Santiment highlight a drop in both transaction volume and social dominance, reflecting reduced interest or fatigue among holders. However, this is not necessarily bearish. The decline in social buzz hasn’t been accompanied by an increase in sell pressure.
Derivatives data from Coinglass adds more clarity:
- Over $251,000 in long positions were liquidated in 24 hours, against only $2,670 in shorts, aligning with the downward price action.
- The long/short ratio on OKX stands at 1.81, a strong bullish signal suggesting traders are positioning for a rebound.
These liquidation events may mark a local bottom, clearing over-leveraged positions and setting the stage for a possible recovery.
Catalyst: Nasdaq Partnership with Bonk Validator Launch
What’s potentially game-changing is BONK’s newly announced partnership with Nasdaq-listed DeFi Development Corp, which officially launched a meme coin validator on May 16. This is the first such collaboration between a publicly traded firm and a Solana-based meme token.
According to BONK’s team:
- The move enhances validator coverage.
- It boosts BONKSOL, the community-run Liquid Staking Token.
- It supports Solana’s decentralized architecture.
The validator pilot program could become a blueprint for future partnerships between Web3-native tokens and traditional financial entities adding legitimacy and long-term value to the BONK ecosystem.
While BONK’s recent price action has shaken some traders, the broader outlook suggests that the meme coin is far from finished. Technical indicators show strength on higher timeframes, while derivatives markets remain bullish. Coupled with its landmark validator partnership, BONK may soon shake off its recent losses and enter a new phase of growth.
Investors should watch price charts closely in the coming days, particularly for signs of RSI reversal or MACD green bars, which could confirm the next leg up for this high-energy Solana-based token.
