Bonk price approaches key reversal zone, 28% bounce likely

Bonk (BONK) price crashed 30% from its recent peak and is gravitating towards a critical support zone. This correction presents a potential buying opportunity for investors anticipating a rebound and subsequent upward trend continuation for the meme coin. 

Bonk falls close to key support level

Bonk price plummeted by 30% from its peak of $0.0000444 on May 28, and it's currently undergoing a retracement to its key support threshold, extending from $0.0000293 and $0.0000283. This area is a good buy-the-dip zone since it contains:

1. The daily support level at $0.0000293, which coincides with the imbalance, stretching from $0.000030 to $0.0000283.
2. The 50-day Exponential Moving Average (EMA) at $0.0000289, which roughly coincides with the 50% Fibonacci retracement level at $0.0000283 drawn from the swing low of $0.0000121 on April 13 to the swing high of $0.0000444 on May 28. 

Interested investors could accumulate this Solana-based meme coin in this area and expect a potential reversal of the downtrend. If Bonk price rebounds from the $0.0000293 mark, it could surge by 28%, aiming to reclaim its daily high at $0.0000377 observed on May 30. Supporting the aforementioned bounce are the Relative Strength Index (RSI) and Awesome Oscillator (AO) indicators, both of which are retracing from overbought conditions and looking to stabilize around their mean values of 50 and 0, respectively. These moves suggest that bullish momentum prevails.

BONK/USDT 1-day chart

However, if the BONK daily candlestick closes below $0.0000206 and forms a lower low on the daily time frame, it could lead to a change in trend favoring the bears. This change in market structure would invalidate the bullish thesis and catalyze a 16% crash in the Bonk price to revisit the previous support level of $0.0000173.