BONK’s bullish structure remains intact despite a corrective move from daily resistance. Price is now retesting a major confluence support zone that could fuel a reversal and drive price back toward the highs.
Summary
- BONK is holding a major confluence support zone combining the point of control, 200 EMA, and 0.618 Fibonacci retracement.
- Bullish structure remains intact with higher highs and higher lows despite recent correction.
- A confirmed reversal with increased volume could drive price back toward daily resistance and the swing high.
After an extended bullish run, BONK (BONK) has entered a healthy corrective phase, retracing from its daily high-timeframe resistance. This move has brought price into a critical support region with multiple technical confluences, creating an ideal environment for a potential reversal. If this support holds, BONK may resume its uptrend and test prior resistance levels in the near term.
Key technical points
- Major Support Zone: Confluence of the point of control, 200 EMA, and 0.618 Fibonacci retracement.
- Resistance Target: Daily resistance and swing high as the primary upside objectives.
- Market Structure: Bullish bias maintained with consecutive higher highs and higher lows.
Price action has recently lost the value area high, leading to a pullback toward a strong technical confluence zone. This area, marked by the point of control, the 200 EMA, and the 0.618 Fibonacci retracement, offers significant support from a structural and volume profile perspective. Historically, such confluence zones have served as springboards for bullish reversals, particularly in assets with an intact uptrend like BONK.
From a structural standpoint, BONK continues to print higher highs and higher lows on the high-timeframe charts. This indicates that the broader bullish trend remains in place despite the current correction. The recent decline appears to be a standard pullback within the context of this trend, potentially offering an accumulation opportunity for buyers.
Volume profile analysis reinforces this outlook. The point of control represents the highest-traded volume level within the current range, often acting as a magnet for price and a level where demand re-emerges. A sustained defense of this level, even with brief wicks below, would confirm that buyers are stepping in to absorb selling pressure. For this reversal to gain traction, bullish volume influxes will be critical, signaling that market participants are committed to pushing price higher.
If confirmed, a reversal from this zone could initiate a range-bound movement between the major support and daily resistance. A breakout above daily resistance would be the next bullish trigger, potentially opening the path for a sustained move toward the swing high.
What to expect in the coming price action
As long as BONK holds the confluence support zone, the probability of a bullish reversal remains high. Traders should watch for a confirmed higher low backed by rising volume. A breach of daily resistance would solidify bullish momentum and open the door for further upside toward prior highs.
