Bonk (BONK) has been trading in a descending channel for the past month, with a crucial support level at $0.0000099 being tested twice. This level was significant back in January 2024, and if the downtrend continues, it could surpass the 2024 low. Despite this bearish outlook, BONK is attempting to form a long-term bottom above the early 2024 support level.
Since March, a descending channel has been evident, with the mid-channel level serving as both resistance and support. The rejection from the channel high indicates that the mid-channel level is the next short-term target. The RSI has climbed above the neutral 50 mark, suggesting a shift towards bullish momentum, although it remains to be seen if this trend will continue. The lack of buying volume indicates that the bearish trend may persist until a structure break occurs.
The OBV is hovering around lows from February and March, indicating a lack of demand for BONK despite a price bounce last week. Traders may consider selling the memecoin short on any further price bounces. The liquidation heatmap shows two levels of importance close to the market price, with one at $0.0000113 below the current price. Though not as dense as the one at $0.000014, it could still be a short-term target for BONK. The $0.000014 level aligns with the channel highs and could be the target after a retest of the mid-channel support.
A bounce from the $0.000011 area is possible as it coincides with the mid-channel support. Traders should be cautious and wait for a price bounce before considering trading with the trend. It is important to note that the information provided does not constitute financial advice and is solely the opinion of the writer. If you are interested in the crypto market and want to stay updated about Bonk (BONK) and its trading patterns, it is crucial to keep an eye on the support and resistance levels, as well as the indicators like RSI and OBV. By staying informed and making informed decisions, you can navigate the volatile crypto market more effectively.
