Is BONK About to Make a Comeback or Just a Dramatic Exit? 🤔

BONK has been trading within a descending channel for a month, which is about as exciting as watching paint dry.
Liquidation cluster near the channel highs could pull the price higher in the coming days, or it could just be a cruel joke.

Bonk [BONK] has been strutting around with a bearish facade on the 1-day timeframe, like a sad clown at a birthday party. Over the past month, the $0.0000099-level has been tested twice—because who doesn’t love a good déjà vu? This level was a crucial support back in January 2024, when we all thought we were going to the moon. If the prevailing downtrend continues, the 2024 low might just be a cozy new home for BONK’s bears. 🐻

BONK tries to form a long-term bottom above the early 2024 support level

BONK Daily Chart

Since March, a descending channel has been playing out like a bad soap opera. The mid-channel level (dotted white) has served as both resistance and support, which is a bit like being stuck between a rock and a hard place. The rejection from the channel high on Sunday meant that the mid-channel level would be the next short-term target—if only it had a better sense of direction.

The RSI climbed above neutral 50 over the past week as the price bounced from the $0.0000099-level, which is like a toddler taking its first steps—adorable but uncertain. This underlined a change towards bullish momentum, but let’s be real, it’s unclear if it will stick around for the after-party.

Instead, it’s more likely that the bearish trend will continue to haunt us like an ex who just won’t go away until a structure break occurs on the back of convincing buying pressure. At press time, the buying volume had not begun to trend upwards, which is about as promising as a diet soda at a barbecue.

The OBV was hovering around its February and March lows, a sign that despite last week’s price bounce, the demand for BONK was as absent as my motivation on a Monday morning. Therefore, traders can use any price bounces to look to sell the memecoin short—because who doesn’t love a good short-sell? 💸

The liquidation heatmap revealed two levels of importance around the market price. The closest one was at $0.0000113, just below the price at press time. Although it wasn’t as dense as the one at $0.000014, its proximity makes it a likely short-term destination for BONK—like a moth to a flame. The $0.000014-level coincided with the channel highs and could be the target after a retest of the mid-channel support, assuming it doesn’t get lost on the way.

A bounce from the $0.000011 area might be likely, as it had confluence with the mid-channel support. Since the market structure has been bearish, traders should wait out a price bounce and look to trade with the trend—because fighting the trend is like trying to swim upstream in a river of molasses.

2025-04-17 08:11

BONK tries to form a long-term bottom above the early 2024 support level

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