Journalist
Posted:
- BONK has a bearish market structure and strong downward momentum.
- Still, the former resistance zone at $0.000014 is likely to act as a demand zone in the coming days.
Bonk [BONK] rose 278.5% between December 13 and 15. The past ten days saw the meme coin dip lower, but this was nothing more than a major pullback. The bulls have reason to be confident about another run north.
A recent AMBCrypto report noted that trading volume in spot markets fell as prices fell lower. Still, the six-hour price chart showed that buyers were still very much in the fight.
The former bearish order block is now an area of interest
Source: BONK/USDT on TradingView
Over the past two weeks, BONK has fallen 55.5%. It was trading at $0.0000155, close to the $0.0000147 support level which is the 78.6% retracement level, and furthermore, the $0.000014 zone, highlighted in cyan, is a demand zone.
It had served as resistance earlier this month, but has been broken through. The rally above this resistance showed that bulls were controlling the market.
The OBV has fallen over the past twelve days, but not as substantially as in December. This meant that the selling pressure was not extraordinary.
BONK’s market structure on the 6-hour chart was bearish. The RSI stood at 34 at the time of writing, indicating strong downward momentum.
However, a revisit to the $0.000014 area would provide a good buying opportunity, with stop-loss orders just above $0.000012.
Market sentiment remained in favor of sellers
Source: Coinalyse
BONK’s Open Interest fell over the past two days. This was accompanied by a price drop of the meme coin from $0.0000192 to $0.0000155, a drop of almost 20% within two days.
The OI and the price drop underlined the bearish sentiment of the past few hours.
Realistic or not, here is BONK’s market cap in BTC terms
Traders can wait for the OI to start rising alongside prices after visiting the $0.0000147-$0.000014 area. This would reinforce the idea that BONK would move higher.
To the north, the $0.000022, $0.000035 and $0.000041 levels are expected to act as significant resistances.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.