Bonk Price Slides 2% as Market Consolidates – Dip-Buying Opportunity?

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Joel Frank

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Joel Frank

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Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology…

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Last updated:

September 5, 2024 14:44 EDT

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The Bonk (BONK) price has dipped around 2% on Thursday, per data presented by TradingView, amid sluggish trading conditions across the broader cryptocurrency market, with some asking if now is a good time to buy the dip.

Last around $0.00001650, the Bonk price is eyeing a retest of its lowest levels since August around $0.000001560.

Bonk is a leading Solana meme coin, with a market cap of $1.15 billion, per CoinMarketCap.

Trading condition in the BONK spot market are indicative of a broader bearish but consolidative trend being seen across the market.

Traders are nervously awaiting the release of key US labor market data on Friday that will have a big impact on Fed rate cut expectations and US economic projections.

US recession fears have been rising since worse-than-expected US jobs data for July was released this time last month.

Ahead of Friday’s August jobs report, the data that has trickled in this week has mostly painted a picture of weakness.

This is boosting the money market implied odds that the Fed will cut interest rates.

But the Fed rushing to cut interest rates due to unexpected economic weakness isn’t necessary bullish.

In fact, in past economic cycles, stocks have performed poorly during times of recession, despite Fed interest rate cuts.

The outlook for major crypto meme coins like Bonk is thus quite concerning right now.

That suggests it might not be a good time to buy Bonk, despite the recent Bonk price dip.

Where Could the Bonk Price Go Next?

Near-term market sentiment hinges on the strength of Friday’s jobs report.

The Bonk price, and the broader crypto market, could enjoy a sizeable rebound if the data comes in strong and pushes back against recession fears.

Conversely, a weak report could be the catalyst for the Bonk price to break below the key $0.00001560 level.

That would open the door to a swift drop back towards the April lows under $0.00001250.

And it would extend the Bonk price’s decline since failing to break back above its 50 and 200DMAs earlier this month.

A retest of December 2023 to February 2024 lows under $0.000010 could even be on the cards.

Bonk Alternative to Consider

Given that it is a well established meme coin, the Bonk price is vulnerable to weakness as a result of broader market sentiment.

But traders can still make quick profits if they get into new meme coins early and at very low market capitalizations, and before they go viral.

One new meme coin project that analysts at Cryptonews.com are big fans of is a fun new token called Crypto All-stars (STARS).

Unlike the majority of new meme coins, Crypto All-stars comes packed with utility.

Indeed, it is a multi-chain staking platform where owners of popular meme coins can deposit their tokens into a smart contract for passive income rewards.

Despite the bearish market, Crypto All-stars presale has been a roaring success, raising nearly $1 million in a few short weeks.

In this video, Cryptonews.com’s in-house presale analyst Chester explains why STARS has 100 potential.

Learn More Here