- BONK price surged by 8% in 48 hours after retesting a key support level.
- Short-term momentum is bullish but wedge pattern suggests caution.
As a seasoned researcher with extensive experience in analyzing cryptocurrency markets, I’ve observed that price movements and chart patterns can sometimes be deceiving. The recent surge of 8% in BONK price within just 48 hours after retesting a key support level is an intriguing development.
Recently, BONK’s price action showed signs of coalescing within a rising wedge configuration, which is typically indicative of an imminent breakout. At present, the BONK token was priced at $0.00002906 following a robust 8% upswing since touching the wedge’s support 48 hours prior.
The ascending support line of $0.00002823 for BONK serves as a springboard, fueling its ongoing bullish surge. Following a steep 23% decline, the prices rebounded at this level. Keep an eye on the next potential resistance at $0.00003592.
At present, the value of BONK is undergoing testing at the significant mark of $0.00002940. Previously, this price point functioned as a robust barrier that was breached only fairly recently, on July 19th.
Reaching beyond the current level could indicate a strong surge forward, potentially taking us to the next resistance point at $0.00003592.
Volume and liquidations paint a mixed picture
Based on data from Coinglass, AMBCrypto’s examination of Bitmex’s liquidation heatmap reveals that a significant number of forced closures in trading occur around these specific price points.
Many investors have set their stop-loss orders at these levels, indicating a significant number of potential sell-offs. This could potentially lead to increased market instability.
As an analyst, I would interpret the surge in BONK’s liquidations, particularly from those holding short positions, as a potential catalyst for the recent price rise.
As a seasoned trader with years of experience in the crypto market, I cannot stress enough the importance of keeping a close eye on open interest-weighted funding rate data. This metric, provided by platforms like AMBCrypto, offers valuable insights into the current market sentiments.
As a crypto investor, I would interpret current market conditions by saying that the funding rate is now balanced at zero, signaling a neutral attitude among traders regarding the market’s sentiment towards it.
Realistic or not, here’s BONK’s market cap in BTC’s terms
What’s next for BONK?
Based on the current technical analysis, Bonk’s price at this juncture held significant importance. The emerging rising wedge formation serves as a bearish sign, suggesting a potential decrease in price once broken.
If BONK surmounts the resistance level of the rising wedge formation, this bearish pattern may no longer hold. Instead, it could signal a bullish breakout due to the significant 8% price increase originating from support zones, reflecting robust buying pressure in the short term.
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2024-07-28 10:46