The Bonk price slipped approximately 2% on Thursday, according to data from TradingView, amidst lackluster trading conditions across the broader cryptocurrency market. With the price currently hovering around $0.00001650, Bonk is seeking to revisit its lowest levels since August, at around $0.000001560.
As a prominent Solana meme coin with a market cap of $1.15 billion, Bonk is facing a bearish but consolidative trend in the spot market. Traders are anxiously anticipating the release of crucial US labor market data on Friday, a significant event that will heavily influence Fed rate cut expectations and US economic outlooks.
In light of escalating US recession concerns following disappointing July jobs data, the imminent jobs report for August is being closely monitored. A string of weak data releases this week has bolstered the likelihood of a Fed interest rate cut, prompted by unforeseen economic weakness which may not necessarily bode well for market sentiment.
Historically, stock performance during recessionary periods has been lackluster despite Fed rate cuts, casting a shadow of doubt over major crypto meme coins like Bonk at present. This cautious sentiment may suggest that buying the dip in Bonk, despite its recent price decline, may not be advisable.
Where Could the Bonk Price Go Next?
The immediate market sentiment hinges on the forthcoming strength of Friday’s jobs report. A positive data outcome could potentially trigger a significant rebound in the Bonk price and the wider crypto market, countering recession fears. Conversely, a weak report could serve as a catalyst for Bonk’s price to breach the critical $0.00001560 level, paving the way for a rapid decline towards the April lows below $0.00001250.
Such a scenario would lead to further downward pressure on Bonk's price following its inability to retest its 50 and 200DMAs earlier this month. A possible retest of the lows from December 2023 to February 2024, below $0.000010, might also be on the cards.
Bonk Alternative to Consider
Given its status as a well-established meme coin, Bonk's price is susceptible to market sentiments. However, traders can still capitalize on quick profits by investing early in new meme coins at low market capitalizations before they gain popularity. One such promising new project is crypto All-stars (STARS), a fun token that offers utility unlike most new meme coins.
crypto All-stars functions as a multi-chain staking platform where holders of popular meme coins can stake their tokens in a smart contract to earn passive income rewards. Despite the prevailing bearish market conditions, crypto All-stars' presale has garnered nearly $1 million in a short span, showcasing its potential for success.
For further insights into STARS' potential, Cryptonews.com's presale analyst Chester offers a comprehensive breakdown in the video. To delve into the intricacies of this exciting project, you can learn more about crypto All-stars crypto-allstars/" rel="sponsored nofollow">here.
