Bonk crypto risks rejection at key resistance: breakout or correction within a pennant?

Bonk is pressing into a multi-layered resistance zone. Without a breakout, price risks a pullback toward the lower boundary of its pennant structure, in line with the 0.618 Fibonacci and value area low. Bonk ( BONK ) is trading at a critical resistance region, one that is stacked with multiple technical confluences. The current price zone includes the point of control, value area high, high time frame resistance, and the upper dynamic trendline of a potential larger pennant structure. With price tightening and momentum slowing, Bonk faces a pivotal moment. A breakout would mark a shift in structure, but failure to do so could trigger a healthy correction back toward support. Key technical points Resistance Confluence: Price is testing the POC, value area high, high time frame resistance, and dynamic pennant resistance. Support at 0.618 Fibonacci: In confluence with value area low and pennant base. Structure at Crossroads: A breakout shifts structure bullish; rejection maintains equilibrium inside the pennant. BONKUSDT (1D) Chart, Source: TradingView Bonk’s recent rally has brought price right into a cluster of resistance that must be overcome for bullish continuation. This region is significant due to its multi-factor alignment: the point of control, value area high, and a high time frame structural resistance all intersect here. Additionally, price is pressing into the upper boundary of a developing pennant, a formation that typically precedes larger directional moves. From a technical perspective, this confluence creates a clear decision zone. If Bonk breaks above the current level with strong volume and sustained candle closures, the pennant will confirm a bullish breakout, shifting structure and setting the stage for a sequence of higher highs and higher lows. You might also like: 4 memecoins to consider buying that feel like catching Dogecoin before the Elon pump However, in the absence of such confirmation, the current setup leans toward a short-term corrective move. The most likely destination for such a pullback is the lower boundary of the pennant, which aligns with both the 0.618 Fibonacci retracement and the value area low. This zone would offer a structurally healthy reset for price, keeping Bonk within equilibrium and allowing momentum to rebuild. Until a breakout occurs, the structure remains neutral-bullish but still inside consolidation. The tightening of price action within the pennant suggests that volatility compression is near its peak, and a breakout in either direction is likely to resolve in the coming days. What to expect in the coming price action If Bonk breaks above the current resistance cluster, expect a bullish structure shift. If not, price will likely correct toward the pennant support at the 0.618 Fib, maintaining equilibrium until breakout. Read more: U.S. markets little changed as investors weigh fresh tariff threats

Source: crypto.news