The Bonk price experienced a significant 28% increase within the past 24 hours, reaching $0.00003244 by 5:45 a.m. EST. This surge is part of a broader positive trend observed in the meme coin sector, leading to a 9% rise in market capitalization to $58.62 billion.

Bearish Signal Indicates Potential Bonk Price Decline

Analyzing the 4-hour chart for BONK/USD reveals the formation of a bearish rising wedge pattern, suggesting a possible correction in the Bonk price soon. The meme coin is striving to convert the $0.00003124 resistance level into support, a crucial move for its price stability.

If Bonk manages to close a 4-hour candle above this level within the next 8 hours, it could establish a strong technical base for further upward movement. Traders may consider entering long positions, potentially propelling BONK to around $0.00003377. Conversely, failure to breach $0.00003124 might invalidate the bullish outlook, leading to a drop towards the immediate support at $0.00002845.

Continued selling pressure could drive the Bonk price down to the subsequent support level at $0.00002567 within the following 24 hours.

Overbought Conditions and Market Dynamics

Technically, BONK is currently in a positive phase, indicated by the Moving Average Convergence Divergence (MACD) line surpassing the MACD Signal line. This momentum appears strong, with the potential for further gains.

However, caution is advised as the Relative Strength Index (RSI) on the 4-hour chart signals BONK's overbought status, typically considered a sell signal due to higher downside risks. Despite the possibility of prolonged overbought conditions during price surges, the presence of a bearish pattern and resistance challenges suggest caution with BONK.

Smog Emerges as a Strong Competitor

Solana's recent surge in popularity has attracted attention to meme coins like Smog, a dragon-themed competitor to BONK. Smog's innovative airdrop campaign, offering substantial rewards based on completing quests, has garnered significant investor interest.

The success of Smog's airdrop initiative, with rewards exceeding $1 million in the first season, has fueled trading activity, recording a remarkable 163% increase in the past 24 hours. Additionally, Smog's attractive staking program, offering up to 42% in annual rewards, adds to its appeal as a promising Solana meme coin investment.

Investors and traders are closely monitoring the developments in both BONK and Smog, assessing the potential for profitable opportunities in these dynamic cryptocurrency markets.