BONK Hits a Wall – Time to Buy or Bail?

Memecoin mania hits another speedbump as BONK stalls at resistance. Traders face the age-old crypto dilemma: dive into the dip or watch from the sidelines?

Price action suggests fatigue after the recent rally—classic ’buy the rumor, sell the news’ behavior from the usual suspects. The chart paints a messy picture, with bulls and bears locked in a tug-of-war.

Meanwhile, the ’smart money’ quietly accumulates while retail traders argue on Twitter. Will this resistance level break or become another graveyard for overleveraged dreams? Only time will tell—but history favors the patient in these games.

Source: BONK/USDT on TradingView

The Trading Volume has been relatively high over the past three weeks. This saw the OBV trend higher in May, after a rocky start to the month.

The new highs the OBV set reflected increased buying pressure on the token.

Over the past week, the RSI of BONK has corrected from strong bullish momentum to neutral/weakly bullish momentum, based on how close it has been to the neutral 50 level.

Taken together, the price action and indicators suggested that more bullishness was warranted. A retest of the trendline support could offer a buying opportunity.

Where should BONK traders scoop up the dip?

Source: BONK/USDT on TradingView

The 4-hour chart showed a range formation over the past ten days. This range (purple) extended from $0.000018 to $0.000024. The mid-range level was at $0.000021, and it served as support a few days ago.

The RSI on the 4-hour chart showed bearish momentum. The OBV did not fall too deep, and the trading volume has been below average during the memecoin’s price dip. This suggests that the buyers will regain strength and push higher in the coming days.

The selling pressure in the past two days came alongside the Bitcoin [BTC] reset from the $111k mark. It bumped BONK beneath the $0.000021 support, and headed toward the trendline resistance or the local low (the range low) at $0.000018.

Hence, a retest of these levels should offer a buying opportunity.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion