- BONK showed that bullish pressure was gaining on the lower timeframes.
- The recent structural break and continued buying pressure in recent months could support a rally.
Bonk [BONK] bulls forced a sharp rise this week on news of a Burn BONK token proposal. This 84 billion token burn proposal has not yet been approved, but the potential reduction in supply has made the bulls dizzy, forcing a 23% move from Monday’s open.
Weighted sentiment was positive, but trading volume started to decline. Is this a sign that the price pump is over?
The daily structure turns bullish
Source: BONK/USDT on TradingView
The 1-day price chart showed that the most recent low was set at $0.00000256 in mid-June. On July 9, the daily trading session closed above this level, causing the structure to flip bullish.
The 78.6% retracement level has been a strong support level over the past six weeks. Bulls hope to defend the $0.0000025 and $0.0000023 levels in the coming days.
The RSI broke above the neutral 50, another early sign of a bullish trend shift. The OBV has been slowly rising since March, indicating that another explosive rally is not a matter of if, but when.
Futures data showed sentiment was positive
Open Interest increased from $205 million on July 8 to $283.3 million on July 10. The rapid increase in the OI alongside the price increase made speculators willing to go long on the memecoin.
Over the past 24 hours, sentiment has started to decline, but overall near-term sentiment has been bullish.
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The funding rate rose back into positive territory after falling on July 5 and more recently on July 9.
However, the result was not abnormally positive, indicating that the market was not overheated.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
