- BONK hit a familiar long-term roadblock.
- Demand remained flat in the spot and futures markets
Memecoins attracted great interest from the market after Bitcoin [BTC] increase to $60,000 in the last 48 hours. On Saturday, the memecoin category even ranked second in terms of Open Interest (OI), up 6% according to Coinglass. This could help the segment, including Bonk [BONK].
Other memecoins like dogwifhat [WIF] and Pepe [PEPE] enjoyed higher volumes than BONK. This could delay any strong momentum for BONK, especially since it hit a long-term roadblock on the charts.
Can BONK clear this roadblock?
Source: BONK/USDT, TradingView
Following BONK’s Q2 downtrend, the memecoin has struggled to clear its key long-term trendline support. The recovery attempt in July and August was undone by the resistance. At the time of writing, the September relief rally hit the roadblock again at $0.000018.
The uncertainty surrounding BONK’s recovery was further confirmed by the overbought conditions flashed by the stochastic RSI (Relative Strength Index) and the neutral value of the RSI. If BTC remains below $60,000, the roadblock could lead to another BONK price rejection.
If so, a price rejection at the obstacle could drag the price towards $0.000015 support (highlighted in cyan).
However, BONK could see a potential gain of 16% if it breaks above the trendline resistance and rises into the supply zone above $0.000020.
The demand for BONK is stagnating
Source: Coinglass
BONK’s OI fell from a July high of $13 million and hovered below $10 million in August and September. This illustrated a decline in interest, followed by flat demand in the futures market.
In addition to the moderate demand, the memecoin also experienced a huge outflow from the spot markets in August and September. This further reinforced investors’ risk-off approach and the lack of strong demand from spot buyers.
Over the past seven trading days, the memecoin has seen nearly $8 million in outflows from centralized exchanges.
Source: Coinglass
The subdued demand could burden BONK and complicate bulls’ prospects of clearing the hurdle in the long term.
If so, the immediate support area at $0.000015 could offer discounted buying for speculators eyeing a potential market rebound from October.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer.