The Solana-based memecoin BONK experienced a significant price decline in late January, erasing gains from an early-month breakout. Data shows the broader memecoin sector fell over 15% last week, with BONK underperforming major peers like Dogecoin.
The popular memecoin BONK saw a bullish structure shift in the first week of January, but this breakout has since faltered massively. CoinMarketCap data revealed the memecoin sector is down 15.47% collectively, with BONK shedding 18.77% over the past week.
For comparison, the leading meme asset Dogecoin [DOGE] has shed 14.5% in the same period. The initial BONK rally to $0.0000134 proved to be only a blip within a longer-term downtrend.
The bullish break occurred when the downtrend’s swing point at $0.0000103 was breached. However, Bitcoin’s [BTC] inability to stay above $94,500 highlighted broader bearish pressure, leading to sizeable selling pressure on BONK.
Analysis of market data indicates a cluster of liquidations around $0.0000074 has been swept. To the north, the next significant liquidity zones are at $0.0000090 and $0.0000095, which may attract a price bounce.
On shorter timeframes, the $0.00000755-$0.00000785 levels represent key Fibonacci retracement levels. The price would likely bounce to test these resistance levels before potentially continuing its bearish move.
The Bonk breakout in early January was promising, but it did not go as the bulls expected it to, the analysis concluded. A short-term price bounce followed by a bearish reversal is expected in the first week of February.
