Can bulls bounce at value area high?

BONK has pulled back from daily resistance and is now testing key support at the value area high. A breakdown risks deeper correction, while holding this level could trigger another push higher.

After an impulsive rally, BONK (BONK) has rejected from daily resistance, sparking a corrective move toward the value area high. This zone now acts as the last line of support before a deeper retracement could unfold. Holding this level is crucial for the bullish structure to remain intact. If it fails, price action is likely to rotate toward the point of control, where a cluster of confluences could provide a more substantial base for a reversal.

Key technical points:

• Support at Value Area High: Critical short-term level BONK must hold to avoid deeper correction
• Point of Control Support: Confluence of 0.618 Fibonacci, lower daily support, and historical range mid
• Volume Tapering: Demand is weakening; strong buy volume needed if price retests point of control

From a structural perspective, the point of control (POC) is sitting below the current price; it represents a significant technical level. It aligns with the 0.618 Fibonacci retracement and a lower daily support, creating a high-confluence demand zone. Historically, this area has also served as a resistance level, meaning a successful flip and retest could confirm it as a strong support base.

So far, BONK has not yet established a clean support structure beneath the value area high, making this a fragile area for bulls to defend. If the current level is lost, a quick and volatile move to the POC is likely due to the lack of support on the way up. This gap in structure increases the risk of sharp downside until a base forms.

The volume profile adds another layer of context. While the rally into resistance was accompanied by significant volume, recent sessions have seen a tapering of demand, suggesting hesitation at current levels. If price revisits the POC, bulls will need to step in decisively with strong volume influxes to validate a reversal and form a bottoming structure.

A confirmed bounce from the point of control could trigger a rotation back toward the swing high, re-establishing bullish momentum. But if that support fails, BONK may re-enter its broader trading range, with downside targets near the value area low which is the base of the current structure.

What to expect in the coming price action:

BONK must hold the value area high to avoid deeper correction. If lost, eyes turn to the point of control for a high-probability bounce zone. Volume will be the key confirming factor