Highlights:
- BONK price has lost key support levels as bears take control across the market
- A continuation of the selloff could see BONK lose $0.00002 critical support
- Uncertainties in the US could lead to a continued selloff
Bonk is in the red today, triggered by the selloff across the cryptocurrency market. Today, Bitcoin is down by 9.6% and has, in the process, driven most altcoins lower by over 10%. Bonk, being a meme coin, has particularly taken a hit and, at the time of going to press, was down by 17.52% to trade at $0.000002544.
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However, like most cryptocurrencies today, BONK trading volumes are on the rise in the day. They currently stand at $754.69 million, up by 22.99%. This is a reflection of the increased attention on the crypto market, as some investors exit in haste, and others take advantage of the correction to take up high-quality cryptocurrencies at highly discounted prices.
Bitcoin Dominance at a Critical Level
While BONK and other cryptocurrencies will bounce back at some point, short-term price action points to a continuation of the selloff. One of them is the fact that Bitcoin dominance is on the rise even as the selloff continues across the board.
This is an indicator that money is fleeing altcoins out of fear that the selloff being experienced at the moment could accelerate. The level of fear in the market at this point is also evident in BONK’s intra-day chart.
Technical Analysis – BONK Price Breaks Market Structure as Bears Take Control
From the charts, BONK is in an accelerated selloff intra-day. This has seen it break market structure after it broke through the 99-day MA support on the day chart. This is a clear indication that bears are firmly in control of BONK. If the current selloff continues, BONK could soon be headed to prices below $0.00002000 in the short term.
Besides the rising Bitcoin dominance which points to a draining of money from altcoins, there are multiple other factors that could accelerate Bonk’s selloffs.
Uncertainties in the US
One of the key factors that could drive BONK and other cryptocurrencies lower is the rising uncertainty in the US political space. There is currently a tussle between the incoming Trump administration and the legislature over a spending bill. This has led to fears that the US government is on the verge of a shutdown.
First of all, I’m not the author of this proposal. Credit to @realDonaldTrump, @JDVance & @SpeakerJohnson.
Second, this is a MUCH better bill that is closer to being a real continuing resolution (not an omnibus masquerading as a CR), but with support for hurricane victims &… https://t.co/AJTI6BTFdr
— Elon Musk (@elonmusk) December 19, 2024
This uncertainty is spreading across the financial markets and could see BONK and other top cryptocurrencies continue to bleed in the short term. If the posturing plays out until Trump is inaugurated, then BONK and other cryptocurrencies could be headed for a month of selloffs.
Fed Chairman Remarks Have Dampened Mood
Recently, the US Federal Reserve cut interest rates by 25 basis points. However, this event did not lead to a rally but instead triggered the ongoing selloff across the financial markets. That’s because while announcing the rate cuts, the Fed Chairman also made remarks about the Fed not being legally allowed to hold Bitcoin reserves.
He also pointed to a few rate cuts in 2025 due to the expectation that tariffs could trigger a surge in inflation. These remarks have created uncertainty in the market, and cryptocurrencies, being high-risk assets, have taken the most hit. Meme coins, due to their lack of intrinsic value, have taken a significantly bigger hit, as seen in BONK’s selloff in the day.
BREAKING: Jerome Powell gives his remarks after the FOMC meetingpic.twitter.com/isUJoMjw9q
— Not Jerome Powell (@alifarhat79) December 18, 2024
BONK Price Still Has Potential for a Rebound
Despite the gloomy scenario across the market today, there is still hope for BONK. For starters, BONK is one of the best-known meme coins. This means a rebound across the market could draw more money compared to the newer meme coins.
Welcome to Robinhood, $BONK. pic.twitter.com/n5vHdzUe4j
— Robinhood (@RobinhoodApp) December 19, 2024
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