$BONK has faced a nearly 28% decline this week, making many investors worry about the future price of the token. However, Ali Martinez via X points out that Bonk’s daily chart shows that the TD Sequential indicator has flashed a buy signal, indicating a possible price recovery in the near future.
The statement is likely a sense of hope for market participants, given that $BONK is trading down over 1% at the press time.
Tom DeMark created the TD Sequential indicator, a technical analysis tool that uses price action over a predetermined number of periods to identify potential trend exhaustion points and potential price reversals in the market.
Why Was BONK Down This Week?
The market performance of BONK, the meme-based cryptocurrency, has declined during the previous week as a result of multiple factors. First, there was instability in the larger cryptocurrency market, with several altcoins, including BONK, seeing value declines due to shifting investor mood and uncertainty in the global economy.
Furthermore, because BONK is a meme coin, it is especially susceptible to hype cycles and speculative trading, which can result in sharp price declines when the initial enthusiasm subsides.
Decreased investor trust has also resulted in a decline in BONK’s market value and demand due to the absence of noteworthy use cases or technological developments.
Also Read: Memecoin $BONK Overtakes Injective ($INJ) Token To Become 54th Largest Crypto By Market Cap
Can BONK Recover From Current Losses?
The present sentiment for BONK’s price trajectory is bearish and the Fear & Greed Index is at 44 (Fear).
Over the previous 30 days, Bonk saw 10.71% price volatility and 10/30 (33%) green days. Additionally, with five technical analysis indicators indicating optimistic signs and twenty-six indicating bearish signals, the overall sentiment for the Bonk price prediction is pessimistic.
Despite this, a recovery in the broader market sentiment can help the price turn its course and trade higher.
In this optimistic case, the technical indicators predict that Bonk’s 200-day SMA will increase during the course of the upcoming month, reaching $0.00002954 by March 09, 2025.
An indicator that is widely used to determine if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum oscillator.
The BONK market is currently in an oversold position, as indicated by the RSI reading of 28.96. According to the RSI indicator, BONK’s price is expected to drop.
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