BONK's value area high under test; breakdown could trigger drop to point of control

BONK faces a critical juncture as it tests the value area high, a pivotal support level that could determine the cryptocurrency’s near-term trajectory. The asset has retreated from recent resistance, sparking a corrective phase that has brought it to this key threshold. Analysts emphasize that holding above this level is essential for maintaining the bullish trend, while a breakdown could lead to a sharper pullback toward the point of control—a zone where multiple technical indicators conflate to form a potential reversal base. The value area high represents a fragile defense line for bulls, with volume tapering to suggest weakening demand at current levels [1].

The value area high, identified as a critical short-term support, aligns with the asset’s recent price action. If BONK fails to hold this level, the path of least resistance appears to be a retest of the point of control, a confluence of the 0.618 Fibonacci retracement, a lower daily support, and the midpoint of the historical range. This area has historically functioned as a resistance level, but a successful retest could validate it as a robust support base [1]. The absence of a clean support structure beneath the value area high underscores the fragility of the current setup, increasing the risk of a volatile drop to the point of control should the price fall below the critical level [1].

Volume patterns further complicate the outlook. The initial rally toward resistance was accompanied by strong volume, but recent sessions show a tapering of demand, indicating buyer hesitation. For a reversal to gain credibility, a retest of the point of control must coincide with a surge in buying volume. Such a scenario could confirm a bottoming structure and re-ignite bullish momentum, potentially pushing the price back toward the swing high. However, if volume remains subdued, the bearish scenario—where BONK re-enters its broader trading range with downside targets near the value area low—gains probability [1].

The structural implications of the point of control are significant. A successful bounce from this level would require a clean reversal pattern, validated by volume, to establish a new base for an upward move. Conversely, a breakdown from the point of control would likely trigger a retest of the value area low, the foundational support of the current structure. This scenario highlights the importance of monitoring volume dynamics and price behavior around these levels. The lack of intermediate support between the value area high and the point of control creates a heightened risk of sharp downside movement until a stable base is established [1].

Looking ahead, market participants should focus on whether BONK can maintain its position above the value area high. A sustained hold here would preserve the bullish narrative, while a break below could force traders to reassess the near-term outlook. The point of control remains a high-probability bounce zone, but its effectiveness will depend on the strength of volume during any retest. As the cryptocurrency navigates this critical technical juncture, the outcome will likely dictate the next phase of its price action [1].

Source: [1] [title1BONK on the brink: Can bulls bounce at value area high?] [url1https://coinmarketcap.com/community/articles/6883c3c3162b3f19b47d8d23/]