Bonk Price Eyes 30% Surge Potential Despite Falling Open Interest
Bonk price is currently in a precarious position with falling prices and volume. However, the macro outlook promises a rebound in the coming days as price action approaches a potential support zone. Bonk is among the best-performing meme coins month-to-date (MTD) and promises even better performance if certain support levels hold.
The SEC retracted its decision to classify Solana and other digital assets as securities. This partial win for SOL may spill over to Bonk in the coming days, as the setup is already ripe for a rally.
Bonk Price Wants to Break Out
The price of Bonk traded at $0.00002637 during the London trading session on Wednesday, a 5.1% drop in the last 24 hours. BONK price is currently in an upward trend, with prices trending above both the 50-day (green line) and 200-day (black line) exponential moving averages (EMA), confirming bullish momentum. Additionally, the price is supported by a rising trendline, indicating a strong uptrend.
A minor resistance level exists around $0.0000292, which, if Bonk’s price breaks above, can rally 30% to the next major resistance around $0.00004. This level coincides with the previous highs and a significant supply zone. Conversely, if its price trends lower, it may find support at $0.0000255 (50-day EMA) and $0.0000225 (200-day EMA), below which the bullish ascending triangle will be invalidated.
The Relative Strength Index (RSI) is currently at 54.95, indicating a neutral stance but leaning towards bullish territory. This suggests that there is room for further upward movement. The Chaikin Money Flow (CMF) also supports this bullish assessment. Sitting at 0.06, it signals positive money flow into BONK and modest buying pressure.
Overall, the technical indicators and market patterns suggest that although the Bonk price action shows slight bearish tendencies, the general sentiment is bullish.
BONK On-Chain Metrics Signal Accumulation
Data from Coinalyze on Bonk’s on-chain metrics suggests market participants are accumulating. While open interest (OI) has been down 4% in the last 24 hours, the Long/Short (L/S) ratio has increased by 11.11% in the last week to 1.879.
The L/S ratio shows the percentage of investors who are long on the asset compared to those who are Short. Combined with the falling OI, it indicates that market participants are holding on to their Bonk tokens, anticipating a price increase soon.
According to Dune Analytics, Bonk has been among the best-performing meme tokens in the last two weeks. Its price increased by 18.7% over the 14 days, coming in behind BOME and COQ.
A significant drop in Bonk trading volume could impact and invalidate this bullish scenario. Additionally, if the L/S ratio drops, it would signify that investors are losing confidence in Bonk price ability to rebound. This may consequently result in a sell-off that would invalidate the current bullish market structure.
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