- Divergence between the price and the accumulation/distribution charts hinted at an uptick
- Convergence of market indicators further supported the likelihood of an rally
As a seasoned crypto investor with battle-hardened instincts and years of market observation under my belt, I’ve learned to read between the lines in the cryptosphere. The recent dip in BONK’s price might seem disheartening at first glance, but upon closer inspection, it paints a different picture.
Over the last seven days, BONK has experienced a drop of more than 8.31%. To be specific, within just the past day, this memecoin saw a decrease of approximately 3.5% in its worth, currently trading at $0.00001812 on market charts. This downturn coincided with a significant reduction in trading activity by 31.75%, indicating that negative market forces remain dominant.
Despite this, however, AMBCrypto’s analysis found that BONK’s prevailing price action might merely be a temporary downturn.
Potential sell relief on the horizon
As I write this, the price of BONK has reached an all-time low. However, contrary to this trend, the Accumulation and Distribution line exhibits a stronger resistance, failing to echo the mentioned drop so far.
The difference in price and trading volume indicates that the decline in price might not be as strongly supported by trades as it seems, which could suggest continued buying enthusiasm or less selling pressure than previously perceived.
It appears that the graph shows BONK rebounding from a significant support line (depicted in the following image), which has previously incited uptrends, reinforcing the positive perspective on its future performance.
Building further on this examination, AMBCrypto employed the Fibonacci Retracement technique to pinpoint possible upcoming price points where BONK might surge in anticipation.
Currently, we’ve pinpointed two crucial points – an initial barrier around $0.00001987, which could potentially halt the price and create stability before a potential surge in buying pressure sets in.
As a researcher, I’ve observed that if the current momentum sustains, it appears that BONK might aim for its next substantial resistance level at approximately $0.00002255. This area has historically shown high levels of selling pressure, which could potentially impact the price movement.
Should buyer interest wane, however, the price could retreat to $0.00001554 as indicated by the Fibonacci Retracement line.
Retail traders and whales anticipate a BONK rally
According to the latest findings from Coinglass, it appears that major investors (the so-called ‘whales’) and individual traders alike seem hopeful that the value of BONK may soon increase.
Indeed, Open Interest (OI) – the sum of outstanding derivative agreements – increased by approximately $1.13 million from the 12th to the 21st of August. This rise suggests that more and more traders are becoming engaged in these contracts.
An increasing Open Interest (OI) indicates increased market activity, suggesting a possible surge in positive movement – Evidence of robust investor confidence.
Additionally, a higher number of BONK tokens leaving exchanges rather than entering them suggests withdrawal activity. This trend strengthens investor trust and optimistic outlook as it decreases the token’s circulating supply, potentially increasing its value in the market.
Based on these signs, it appears that an increase in BONK’s price could be imminent, assuming the current bullish trend persists.
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2024-08-22 10:15