- BONK saw signs of a bullish reversal at a key support level
- The figures underlined the growing interest and potential bullish momentum in the charts
BONK’s price has been a rollercoaster ride lately, with significant highs and lows. In fact, the altcoin’s price has fallen 47% since May 28. At the time of writing, it was close to a crucial support level around $0.00002260, having been retested several times over the past three months.
The price also seemed to obey a rising trendline support, one converging at $0.00002206. So it appears that BONK may have built bullish momentum, likely towards the next resistance level at $0.00002940, before breaking away as it has built enough momentum to break its resistance level.
At the time of writing, BONK’s market cap had a valuation of $297 million, with the altcoin losing more than 3% of its value in the last 24 hours alone.
Source: BONK/USD, TradingView
On the map, tThe stochastic RSI (4.90) indicated that BONK was in an oversold zone, indicating a buying opportunity after a likely reversal.
Moreover, the moving average convergence divergence – with a narrow line at -0.00000009 – indicated a potential convergence, indicating a shift from bearish momentum to bullish momentum.
What story do the statistics tell?
AMBCrypto’s analysis of Santiment’s data revealed some notable trends. For example, the percentage of the total stablecoin supply held by whales over $5 million trended upward. This trend is a sign of increased confidence among major investors, which may precede impending price movements.
As the BONK whales accumulate, buying pressure in the market could increase, pushing prices higher.
Source: Santiment
What does liquidity add to the support level?
After looking at the price action and Santiment’s inferences pointing to a possible price increase, AMBCrypto assessed the liquidity chart. The liquidity map indicated high leverage areas and liquidity points.
The chart indicated significant activity around $0.0000238 and $0.0000247, which could act as price magnets for the cryptocurrency and its traders.
Source: Coinglass
Is it time to buy the dip?
With price action and market sentiment suggesting a bullish reversal may be in store, now could be the best time to buy the dip. However, if the price breaks out of the key support level at $0.00002260, the price of BONK could fall even further.
